Sri Lanka cuts LP gas price under formula
ECONOMYNEXT – Sri Lanka has cut the price of a 12.5 kilogram cylinder of liquefied cooking gas by 2511 rupees under a pricing formula.
LP gas was under a court directed pricing formula, which gave financial stability to distributors until 2015.
Prices of LP Gas was cut in the 2015 budget and range of price controls was announced by then finance Ravi Karunanayake.
Sri Lanka has also introduced a pricing formula for milk powder.
“Further to shifting milk powder pricing last week to equitable formula agreed by industry n #SriLanka today we shift LPG to formula,” Economic Reforms and Public Distribution Minister Harsha de Silva said in a twitter.com message.
“Though milk increased by LKR50/kg LPG will reduce by LKR251/12.5kg cylinder from midnight. A new paradigm in regulation by depoliticizing pricing.”
Publicly traded Laugfs and state-run Litro Gas had suffered losses after market pricing was dropped.
In recent months, LP Gas prices had dropped in world markets. (Colombo/Oct05/2019)