LAUGFS chief apologises for shortage as gas price rise prompts restaurant increases and Parliament row
LAUGFS Gas chief executive Nalinda Kurukulasuriya has apologised to consumers for a shortage that lasted several weeks, while defending the company's decision to raise the price of a 12.5 kg cylinder by Rs. 1,775 to Rs. 6,741 from midnight on Friday. The hike is already rippling through the economy: restaurants using the gas are raising the prices of short eats, fried rice and kottu, and the increase triggered a heated argument in Parliament between the Opposition Leader and the Speaker.
Why the price went up
Chief Executive Officer Nalinda Kurukulasuriya said the shortage was caused by a combination of international supply disruptions and regulatory restrictions affecting the company's Hambantota LPG terminal. He said that as a company accountable to the country, he had to first apologise to customers for the inconvenience caused by the inability to supply gas. On the price increase, he cited rising international LPG prices, higher shipping and insurance costs, exchange rate fluctuations and taxes, and said the revised price was needed to cover costs rather than generate additional profit, describing it as a break-even price, not a profit-making price.
Explaining the cost build-up, he said the per-tonne price of LPG announced at the start of each month by Saudi Aramco is the main factor in setting a cylinder's price, and that the war situation prevailing since early this year has raised international prices significantly, adding about Rs. 706 to the cost of a 12.5 kg cylinder. Higher shipping and insurance charges caused by the same war conditions added a further Rs. 417 per cylinder, he said, insisting that the revision was not intended to profit or to inconvenience consumers.
Hambantota terminal restrictions
The chief executive also revealed that restrictions imposed following a Board of Investment audit had affected the company's ability to supply LPG from its Hambantota terminal to the domestic market. The company had exceeded the permitted volume of LPG released to the local market under conditions linked to its export operations, and was forced to seek alternative supply arrangements at a time when international availability was already under pressure. He said the company has now secured fresh LPG shipments and resumed distribution, while the government is working with the relevant authorities to resolve the Hambantota restrictions. He urged consumers to avoid panic buying, saying it places additional pressure on supplies, and expressed confidence that the shortage would ease over the coming days.
Food prices follow
The All Ceylon Restaurant Owners' Association has announced that restaurants and eateries operating with this gas will raise the price of short eats by Rs. 5 and of fried rice and kottu by Rs. 15 each to offset rising operational costs. The association's chairman, Harshana Rukshan, said the adjustment follows the supplier's rate revision, under which the 12.5 kg domestic cylinder rose by Rs. 1,775 and the 5 kg cylinder by Rs. 732.
Row in Parliament
In Parliament, Opposition Leader Sajith Premadasa attempted to raise the sudden gas price increase as an urgent matter through a point of order under Standing Order 92(2), maintaining his right to speak on behalf of the public. The Speaker and ruling party members held that an economic price increase is not a valid procedural query, ruling that points of order are reserved for challenging procedural correctness during sittings, such as during a vote or division, rather than for debating general grievances. A prolonged heated argument followed as the Speaker repeatedly instructed the Opposition Leader to present his scheduled Standing Order 27(2) question or take his seat, while the Opposition Leader pressed his case for transparency and public relief.