Gas companies cut down on production; dealers selling cylinders at higher prices

COLOMBO (News 1st); Consumers were seen purchasing gas cylinders at higher prices than usual at a long queue formed opposite the Laufgs gas dealership outlet in Bulumulla in Kandy, today (04).

A 12.5kg Gas cylinder was being sold at Rs. 3,550, when News 1st correspondents questioned the sales representatives regarding the prices.

When the consumers also admitted that they purchased cylinders at the same price, the correspondents further questioned the dealers as well as the consumers, stating that they should be sold at Rs. 2,840 as the Government has not increased the price as of yet.

The consumers said that they have no other choice but to purchase the cylinders, as there is a shortage while queues have formed at many places.

However, the Laugfs Gas company says that it has not increased prices.

A long line to purchase Litro gas was also seen in Kadawatha today (04).

The public woefully admitted that they have to stand in long queues to purchase kerosene and petrol as well, in addition to gas, while another exclaimed as to what advantage could possibly come from changing ministers in charge of the subject. 

" Can't they appoint a proper minister who can get the job done?" a person said.

Meanwhile, people in Madurankuliya in Puttalam were seen waiting in line to purchase gas, while only 8.4 kg and 5 kg cylinders were sold at the dealership outlet, and not the 12.5 kg cylinder.

The two gas companies claim that the failure to issue letters of credit risked in creating a crisis.

Laugfs Gas Chairman W.K.H. Wegapitiya stated that his company, which released around 40,000 gas cylinders to the market daily, currently issues only 2,000 cylinders for a day.

Litro, which launched 100,000 gas cylinders a day, has reduced its production by half.

A senior official said they haven't received the required dollars to unload two consignments of gas that have reached the country.