ECONOMYNEXT – Sri Lanka’s state-run Litro Gas has secured a supply of 90,000 metric tons of cooking gas for the last quarter of the year, officials said.
An official who requested anonymity said the company has secured 30,000 metric tons of liquid petroleum (LP) gas per month from October to December 2022.
With Sri Lanka going through its worst currency crisis in decades, monthly LP gas imports dropped significantly in the second quarter of the year, which greatly inconvenienced the public.
Prior to the crisis, the official said, Litro imported around 33,000 MT per month.
LP gas consumption by the general public has reduced by around 10-12 percent over the recent months, the official said, with consumers switching to alternatives such as kerosene stoves, firewood, rice cookers and induction cookers due to gas shortages and higher costs.
On October 05, the firm announced a drop in cooking gas prices after a reduction in global prices.
Litro Chairman Muditha Peiris said the reduction will allow for a return to the convenience of using cooking gas.
“No matter how many alternatives there are, whether it’s firewood or kerosene or electricity, if you calculate the total, using gas prudently is more profitable,” he said.
The new gas consignments are received on a weekly basis and there are no delays at present, an official said.
Going forward the firm expects to create a supporting mechanism for the payments of the shipments by combining the state banks, the treasury and a smartphone app that expatriates can use to purchase gas for their families back home, payable in US dollars.
With more people using the app, the firm expects to cover the payments of at least two consignments from the forex generated from the Litro app, the official said. (Colombo/Oc076/2022)