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Laugfs Gas urges Govt to introduce transparent mechanism for LPG pricing | Lanka Business Online

“On the long term, there will continue to be global price volatility and other macro-economic factors, which are largely unpredictable, affecting the local LPG Industry,”Thilak De Silva, managing director, LAUGFS Group said.

“Therefore, we believe a fair and effective pricing formula based on key indicators would help address this situation, where consumers would be able to enjoy price benefits arising from decreasing market prices, while ensuring sustainability of the local LPG industry during times of rising world prices.”

This will provide a transparent, impartial and fair mechanism to determine the local LPG retail price in the long run,” he added.

During the period between May 2017 and January 2018 alone, a metric tonne of LPG price has increased by almost 50 percent.

In the statement, LAUGFS Gas PLC stressed the importance of the recent increase in the LPG retail price approved by the Consumer Affairs Authority, while elaborating on the macro-economic conditions that necessitated it.

The Saudi Aramco Contract Price is considered the primary international benchmark for LPG price regulations within the Arabian Gulf and Asian region, and a significant volatility in this contract price was seen directly impacting the LPG retails prices in Sri Lanka.

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Laugfs Gas urges Govt to introduce transparent mechanism for LPG pricing – Lanka Business Online.

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