Mar 18, 2021

No need to increase gas prices - PM

Minister of Finance - Prime Minister Mahinda Rajapaksa yesterday  (Mar. 17) stated that there is no need to increase domestic gas prices as there is no gas shortage in the country.

A media release from the Prime Minister’s Office stated that the PM Premier made this statement whilst addressing a review meeting on the country’s economic situation and Market at the Temple Trees.

Trade minister - Bandula Gunawardena has pointed out that gas companies have sought permission to increase prices.

PM Rajapaksa also drew his attention towards providing relief to the consumers with regard to rice, coconut, milk powder, meat, fish, eggs, dhal, red grains, potatoes, vegetables, and gas.

Will gas companies collapse?

However, 'Sri Lanka Mirror' learns that the state owned and private gas company in Sri Lanka are facing a severe financial crisis as the government has not taken steps to increase local gas prices despite the rising prices of gas at the international market.

Gas prices recorded the highest ever gas prices early this month with a gas ton being priced at $ 604.

As a result, both gas companies are suffering a loss of Rs 750 per one cylinder and their monthly loss is estimated around Rs 1.6 billion.

Because of this, the two gas companies are facing financial difficulties and are not in a position to import the gas quantities required for the country.

If the government fails to take immediate steps to rectify the drastic situation, the country's gas supply would collapse.

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