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POSTED AT 09:20 AM 27-09-2018

LP Gas distributors urge revision of charges

LPGDASL officials at the press conference in Colombo. Picture by Saliya Rupasinghe

The LP Gas Distributors Association (LPGDASL), attached to Litro Gas says that they urgently need a revision of their handling charges.

“Sri Lanka will be facing an imminent crisis in LP Gas distribution that could negatively impact the economy unless the relevant authorities take meaningful steps to address their longstanding grievances.”

The Association has called for a reasonable increase in the channel margin from the current 7.5% to 12%. They also called for a higher transport margin which is to be amended to a minimum of Rs.7 per km within Colombo district with a sufficient increase in percentage for all other districts. “This will result in the increase of around Rs. 70 for a medium size cylinder of gas,” said President LP gas Distributors Association, Sathyendra Wijayapura yesterday.

“We are asking for a revision of channel margin as costs in fuel, diesel, tyres vehicle spare parts and other overheads have gone up. “We must also state that there had been no revision of our costs in the past six years. Since 2007, we have been adhering to the highest of business standards and doing our very best to ensure that there is no disruption whatsoever to the LP Gas distribution in Sri Lanka. We have borrowed from various financial institutions, invested heavily and overcome numerous challenges with the greatest difficulty to make sure that we have safely and efficiently made all our deliveries 365 days of the year for several years, so that both our domestic and industrial consumers are able to function smoothly.”

He added that their growing list of financial commitments range from paying loan installments, increasing staff salaries, lease installments on vehicles, regular staff training, periodic marketing and promotions, vehicle insurance, maintenance and spare parts as well as safety equipment for employees. “As a result, all 35 distributors find it impossible to continue their operations at this same high level due to the extensive outflow of finances,” he added.

Liquid Petroleum Gas (LP Gas) is the most popular, convenient and economical energy source in the domestic and commercial cooking. Additionally, it is widely used in various large-scale industries such as hospitality and agriculture (animal husbandry). At present, over 5.5 million households in Sri Lanka use LP gas as the main source of cooking energy. Litro Gas enjoys over 73% of the market (over 4.25 million households) in Sri Lanka.

Lakmi Nanayakkara