LPG prices will remain unchanged: Vasudeva

Saturday, 29 May 2021 00:36 - - {{hitsCtrl.values.hits}}

Denies speculation on price hike, says any increase now will be unbearable for public
Claims private sector pushes for price hike as it cannot keep up with global market price increase
Says Govt. ready to take over private LPG company if need arises, but will not use public funds to rescue bankrupt firms

Water Supply and Drainage Minister Vasudeva Nanayakkara

Despite the rise in global prices, a top Government Minister this week assured that the local price of Liquefied Petroleum Gas (LPG) would remain unchanged.

“Gas (LPG) prices are rising internationally. However, the Government has decided not to increase the gas price. If the price of gas goes up at this very difficult time in the country, the people will not be able to bear the inconvenience cause by it,” Water Supply and Drainage Minister Vasudeva Nanayakkara told media this week responding to questions on speculations of LPG increase.

He categorically denied any speculations on decision to increase price of LPG, adding that no such subject was even discussed during the weekly Cabinet meeting.

“We do not run Litro Gas as a for-profit earning company. We rather continue it as a public service institution while managing any losses if necessary,” Nanayakkara claimed.

As the private sector cannot cope up with the current rise in global LPG prices, the Minister said that it was taking measures to push the Government to increase the local price of LPG.

When asked if private sector players were expecting any relief from the Government given the current situation, Nanayakkara said it was impossible to use public funds to rescue private sector bankrupt businesses.

“I don't know if they are expecting relief or not, but it is not possible to allow the Government money to be used for bankrupt businesses in the private sector. In the US too, large sums of money were given to revive those bankrupt companies, especially to financial institutions. But what happened? Instead of uplifting the institutions, the money received filled the pockets of the top executives and their owners,” he said.

The Minister however said if the need arose, the Government was ready to take over the company for larger benefit of the general public.

“If necessary, the private company can sell its distribution network, including storage tanks, to Litro Gas or take their gas system to Litro Gas and evaluate the asset base and give it to Litro — but it is not for sale in the market. We are ready to take it for the public good,” Nanayakkara added.

He also said that if there was an asset share the private company should simply give it back to Litro Gas one day when they did not want it.