ECONOMYNEXT – Sri Lanka’s Laugfs Gas Plc said it has halted import and distribution of liquefied petroleum gas imports as authorities had denied a price hike despite soaring raw material prices.
Laugfs said it had requested a price increase from Sri Lanka’s Consumer Affairs Authority, which is operating as a price control agency.
“The decision of the authorities concerned has been delayed in this regard and it is still pending,” the firm said in a stock exchange filing.
“The company will use its best endeavours to continue to negotirate with the authorities to resume supplies of LP Gas at its earliest.”
The firm lost 954 million rupees in the March 2021 quarter as global prices rose and it was denied price hike.
Laugfs is estimated to have a 20 percent market share.
Price controls of the generally cause shortages and also creates a ‘black market’ at the market clearing price or higher levels.
Sri Lanka’s Consumer Affairs Authority has previously created shortages of items like tinned fish and lentils through its price controls. (Colombo/July22/2021)