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Tuesday October 26th, 2021
Energy

Sri Lanka’s Laugfs Gas is yet to ‘officially’ halt LP Gas imports

ECONOMYNEXT – Sri Lanka’s Laugfs Gas Plc has “not taken any decision officially” to halt liquefied petroleum gas imports, the firm said in a stock exchange filing.

Sri Lanka’s gas distributors have asked for price increase as propane and butane prices rose amid US stimulus and the rupee also fell due to money printing.

Money printing has is continuing to create forex shortages and banks are rationing US dollars after a price control on dollars for importers were set at 203 to the US dollar.

Though money is printed dollars are not supplied to redeem the dollars and maintain the 203 to the US dollar peg when people – usually state workers and contractors who get the printed money – buy LP Gas and other goods.

LP Gas Chairman W K H Wegapitiya was quoted in Sri Lanka’s The Morning newspaper as saying that due to losses on the sale of LPG and difficulties in getting US dollar letters of credit, the firm was “slowly pushing towards” halting LPG imports.

Sri Lanka has been controlling interest rates with printed money in so-called ‘Modern Monetary Theory’ creating unusually severe monetary instability. (Colombo/July20/2021)

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