ECONOMYNEXT – Sri Lanka’s state-run Litro Gas said it has the capacity to take over the market share of privately owned Laugfs Gas and will fill the cylinders amid concerns that the firm will halt LPG imports due to price controls and forex shortages.
Laugfs has a market share of 20 percent, and Litro has the capacity to supply the volume, Litro Gas Chairman Theshara Jayasinghe said.
“In that case Litro Gas company will fill any cylinder of any colour,” Jayasinghe said in a statement.
“We have the stocks to do that. We have the market power to supply chain to supply this in the future.
“Therefore there will be no gas shortage.”
Global propane and butane prices have also moved up, and both firms have asked for price increases.
However the price control agency has denied the increases.
Laugfs Gas said Tuesday there was no ‘official’ decision to halt LPG imports, after its chairman was quoted in a newspaper report that the firm was losing 800 rupees per cylinder and was facing difficulties in getting letters of credit.
Sri Lanka has been printing large volumes of money in a ‘monetary stimulus’ after cutting taxes in a ‘fiscal stimulus in the pursuit of so-called ‘Modern Monetary Theory. (Colombo/July20/2021)