Govt. to ensure LPG supply amidst Litro restructuring

Wednesday, 30 August 2023 00:27 - - {{hitsCtrl.values.hits}}

The Government has decided to approve to purchase of 50% of the total supply stipulated in the 2024-2025 contract from the current supplier as a reorder of LP gas to ensure uninterrupted distribution in light of the ongoing restructuring process at Litro Gas Lanka.

The proposal to this effect submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister was approved by the Cabinet of Ministers.

The company’s contract for the supply of 280,000 tons of LP gas set to conclude on 31 December 2023, has prompted authorities to consider a strategic approach to maintain an uninterrupted gas supply.

“The plan involves the purchase of 50% of the total supply stipulated in the existing contract from the present supplier as a re-order. This move is intended to adhere to the Government’s procurement guidelines while also ensuring that the ongoing restructuring process remains unaffected,” Co-Cabinet Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

Noting that Litro Gas Lanka’s restructuring process has already begun, he said it appears that signing additional agreements could hurt the streamlining process.

“This strategic manoeuvre is poised to safeguard both the interests of consumers and the successful completion of Litro Gas Lanka Company’s restructuring process,” Gunawardena added.