ECONOMYNEXT – Sri Lanka’s liquefied petroleum gas (LPG) distributors have sought have an increase in the controlled price but no cabinet decision has been made, Co-cabinet spokesman and Petroleum Minister Udaya Gammanpila said.
In Sri Lanka LPG petroleum prices are regulated by the Consumer Affairs Authority, Minister Gammanpila said.
He said distributors have made a request to raise prices.
Publicly traded Laugfs gas and state-run Litro gas has a duopoly in the business in Sri Lanka.
On paper there is a cost based pricing formula for LPG in Sri Lanka but sometimes price hikes are held back.
Oil prices collapsed in 2020 as demand fell over lockdowns but some refined product prices did not fall as much amid a fire in Saudi Arabia.
However Propane and Butane, the main ingredients of LPG were around half the current price in June 2020.
The Saudi Arabian Aramco contract price for Butane was 350 dollars a tonne in June 2020, and Butane was 330 dollars.
In Feburary 2021, propane set at 605 dollar a metric tonne up 55 US dollars while butane also rose by 55 dollars to 585 dollars a tonne.
In March the propane contract was set at 625 dollars up 20 dollars and Butane 595 up 10 dollars.
Prices have risen for nine months in a row. (Colombo/Mar09/2021)