The Sri Lankan government is considering maintaining a stable price for liquefied petroleum gas by allowing a public and private partnership to maintain LAUGFS terminal jointly between LAUGFS Gas and state-owned Litro Gas for storage, with the aim of reducing costs.
LAUGFS’s chairman said this proposal was made by him along with two other suggestions at a meeting held with the president along with several top officials. He noted that he has also proposed to allow a price increase or government subsidy for the two companies to supply LPG cylinders at the present price of Rs.1,493. According to some reports, he mentioned there was no plan to merge the two companies.
The president has appointed a committee to study the proposal of jointly operating the LAUGFS terminal to maintain stocks of LPG for the use of two companies he explained.
The transport cost of two companies’ could be reduced by around $70 per metric ton by using LAUGFS Hambantota facility with a capacity of 30,000 and its other 3,000 MT terminal at Mabima.
The other benefit was the possibility of purchasing LPG at a low price for both companies via a joint procurement committee by LAUGFS Terminals Ltd.
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