Litro Gas prices reduced by Rs. 251

Saturday, 5 October 2019 00:01 - - {{hitsCtrl.values.hits}}

New price formula sees retail prices adjusted
Minister Harsha de Silva says new paradigm in regulation by depoliticising pricing has arrived
Ministries, stakeholders, and industry converge to agree on reduction
CAA to monitor market for errant sellers and violators

The price of the domestic household Litro brand LPG cylinder has been slashed with effect from midnight yesterday after a pricing formula was applied to LPG by the Government.

There has been no confirmation if the other brands will follow in Litro’s footsteps.

Accordingly, the price of a 12.5kg Litro cylinder has been reduced by Rs. 240 in Colombo and by Rs. 251 in all other districts today. The prices of 5kg and 2.3kg Litro LPG gas cylinders, too, have been reduced accordingly, said the Ministry of Commerce in a press release yesterday.

Thereby, within Colombo, the price of a 5kg Litro LPG cylinder will be reduced by Rs. 95 and 2.3kg by Rs. 30. The change to the smaller capacity cylinders for other districts will also adjusted in the coming days.

Minister of Economic Reforms and Public Distribution Dr. Harsha de Silva took to Twitter, calling the move “a new paradigm in regulation by depoliticising pricing”.

According to de Silva, an equitable formula agreed on by the industry was used to decide the change in pricing, following the use of a similar mechanism which led to changes to the powdered milk prices last week. Last month, de Silva opined that the increase in powdered milk prices through a new formula was an indicator of depoliticising the pricing mechanism, pointing out that it is rare for governments to increase essential commodity prices after an election has been called.

The Minister pointed out that an agreement was only finalised yesterday after several months of consultation led by the Ministry of Economic Reforms and Public Distribution, and included the Consumer Affairs Authority, Treasury, Industry, and all stakeholders.

The Minister of Industry, Commerce, Resettlement of Protracted Displaced Persons, Cooperative Development, Skills Development and Vocational Training Rishad Bathiudeen has instructed the Consumer Affairs Authority (CAA) to raid errant retailers who violate the new price structure. Violators risk incurring fines or facing jail if found guilty.