LPG price hike inevitable after fuel jolt

Monday, 14 June 2021 00:25 - - {{hitsCtrl.values.hits}}

The call for an LPG price hike that was made a few months ago becomes inevitable following the upward revision in fuel prices on Saturday, industry analysts said.

The two LPG companies, Litro and LAUGFS, had earlier filed a price revision with the Consumer Affairs Authority (CAA) but the latter had deferred a decision as well as sought alternative suggestions.

The new price requested varies between the two companies but both are above Rs. 500 per 12.5 kg cylinder.

The current price is Rs. 1,493 and as per Litro, the desired price as per increased cost (before the fuel hike) was Rs. 2,163. The highest selling price of LPG of Rs. 2,396 was in in 2012/13, and the revision, if granted, would mean LPG will still remain 38% cheaper than the all-time high price.

Trade Minister Bandula Gunawardena has said the Government was not in agreement with the proposed hike in LPG prices but would negotiate a lower level.

However, analysts opined a hike was warranted based on global prices, the increase in freight cost, and Saturday’s fuel price hike; and that the Government has little room to negotiate.