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FT
Wednesday Nov 06, 2024
Wednesday, 29 September 2021 00:19 - - {{hitsCtrl.values.hits}}
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| Minister Lasantha Alagiyawanna
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Cooperative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna yesterday said that the special purpose vehicle (SPV) gas company – Siyolit Ltd., is not
dissolved, confirming that Chairman and the Board of Directors have been appointed.
The SPV was formed by merging State-run Litro Gas Ltd. and Laugfs Gas Plc with the stated aim of procuring bulk gas to both firms to reduce the cost of procurement and to pass on the benefit of the price to the end consumer.
“A Board of Directors, including the Chairman, has been appointed for Siyolit Ltd. Through the implementation of this joint venture, it is possible to procure LPG Rs. 125-130 cheaper than the prices at present. The newly formed State-run firm is currently carrying out the feasibility studies in this regard,” he said at the weekly post-Cabinet meeting media briefing in response to a query by journalists.
He said the formation of the new firm would enable the Government to provide LPG at a cheaper price, which is also the objective of the Government.
Speaking to the Daily FT, Alagiyawanna said he was not aware of the Board of Directors appointed, as the administration of the SPV was done through the Finance Ministry.
“The SPV – Siyolit Ltd. is not scrapped, it is functional,” he told the Daily FT.
Unconfirmed sources said former Ceylon Petroleum Corporation (CPC) Managing Director Susantha Silva had been appointed as Siyolit Chairman.
He said the gas companies proposed to raise prices, following the Government identifying it as an essential service, based on the rise in world market prices and foreign exchange crisis during the past six months.
Alagiyawanna, however, said that despite the approval granted to the privately-run Laugfs Gas to increase the prices, the company could not cope up with the demand, leading to a gas shortage in the market.
The State Minister also pointed out that the above Rs. 125-130 price benefit could be possible after evaluating and amending the inefficiencies at both LPG companies at present.
The Litro Surakeeme National Unity, including employees and civil society members, have alleged that the formation of Siyolit Ltd. could sabotage State-run Litro Ltd., in favour of its competitor. Litro currently holds approximately 70% of the market share whilst Laugfs holds only 30%.
Consumer Rights Activist Asela Sampath alleges the formation of the new gas company is a serious concern, which needs to be reviewed. (CdeS)
