Nine-member team to restructure LPG industry

Tuesday, 6 July 2021 01:50 - - {{hitsCtrl.values.hits}}

A nine-member expert committee has been appointed to advice on the proper restructuring of the LPG industry.

The move follows the Cabinet of Ministers last month deciding to proceed with a proposal to harness possible synergies between Litro Gas Lanka and LAUGFS Gas Company to strengthen the LPG industry amidst rising global prices.

The Committee is headed by Finance Ministry Deputy Secretary R.M.P. Rathnayake and comprises of Public Enterprises Department Director General P.A.S. Athula Kumara, Board of Investment Chairman Sanjaya Mohottala, Sri Lanka Standards Institution Director General Dr. Siddhika Senaratne, People’s Bank Acting Deputy General Manager – Corporate Banking Kumari Senarathna, Bank of Ceylon Assistant General Manager – Corporate Relations Madawa Dissanayake, Litro Gas Lanka Chairman Anil Koswatte, LAUGFS Gas Chairman W.K.H. Wegapitiya and Ministry of Energy Advisor Saliya Wickramasuriya.

The Committee will study the process of procurement, transportation and storage of LPG requirements of the country by Litro and LAUGFS.

The Cabinet of Ministers at their 21 June meeting decided to proceed with a decision made on 7 June on this move to appoint a ministerial subcommittee headed by the Minister of Trade to obtain recommendations on the restructuring of the liquefied petroleum gas (LPG) industry of Sri Lanka.

The Government said the Cabinet of Ministers approved the implementation of several recommendations submitted by the ministerial subcommittee based on the agreements reached during the discussions held precedence by the representatives of the companies engaged in the gas industry in the country, the relevant Government institutions and banks and the experts in the field.

Their recommendations were as follows:

1. Litro Gas Company and LAUGFS Gas Company continue to sell a 12.5 kg domestic gas cylinder at Rs. 1,493 as currently prescribed by the Consumer Affairs Authority

2. Purchasing, transporting and storing gas associatively by both companies and using the Hambantota Gas Terminal for this purpose

3. Appointment of a committee consisting of experts in the relevant fields, including representatives of Litro Gas Lanka and LAUGFS Gas to carry out the procurement affairs, transportation and storage affairs related to the purchase of the required LP gas for the country

4. Implement the recommended methodology by the subcommittee within the next six months and take appropriate steps based on its progress.