Gas shortage aggravates in Sri Lanka

COLOMBO (News1st): Sri Lanka's gas industry is facing a shortage of at least 2.9 million cylinders at present. This has prompted consumers of Laughs Gas to comb the streets in search of cylinders. A shortage of gas cylinders had risen after two LPG gas companies, Litro and Laughs Gas requested authorities to increase prices. Both companies have said the current prices of gas cylinders are based on gas prices in the world market in July 2019 and the exchange rate of the dollar at that time. In July 2019, a metric tonne of gas had been priced at 364 US dollars. The exchange rate of the dollar had stood at 178 rupees. Currently, a metric tonne of gas is 658 US dollars in the world market. The exchange rate of the dollar is 207 rupees. However, the cabinet sub-committee appointed to look into this matter, had recommended against increasing gas prices. This had ultimately led to a shortage of gas in the local market. "If you want to purchase a new cylinder, you won't have to spend more than 5450 rupees," Theshara Jayasinghe, the chairman of Litro Gas Lanka said. Customers of Laughs Gas who are experiencing a shortage of cylinders, are now prompted to purchase Litro Gas products. However, the mounting prices have affected them. Gas cylinders which, according to the Litro Gas chairman has been priced at 5450 rupees, are being sold at high rates by local dealers. The COVID 19 pandemic and the rising cost of living have raised questions on whether the consumer can afford new cylinders. The advent of the winter season in European and North American countries will prompt a high demand for gas in their industries.  This will only aggravate the gas crisis. "...the finance ministry and the state-run gas company will implement a plan in this regard next week," trade minister Bandula Gunawardana said.