The Litro Gas Company which accounts for 80% of the local gas market is currently selling their gas cylinder while incurring a loss of Rs 847. Accordingly, in a day, the loss incurred amounts to Rs 80 million, while the loss incurred in a month stands at Rs 2.2 billion.
Litro Company is facing such hardships in a background where they remain without being a burden to the Treasury or other government agencies, including its partners, the Sri Lanka Insurance Corporation, despite the prevailing situation concerning the COVID-19 pandemic.
Currently, the price of a Litro gas cylinder stands at Rs 1,493 while the Consumer Affairs Authority (CAA) granted a price hike of Rs 363 to the Laugfs Gas Company on 13 August.
Under the bunkering facility of Litro, the company handles 35,000 metric tonnes of LP Gas, with over 225 employees working directly under the company.
The setting up of a new gas company by the Government other than the Litro and Laugfs Gas Companies has also become problematic. It is reported that the newly set up company will be purchasing LP Gas under the bunkering facility of the Laugfs Gas Company.
In that scenario, gas will have to be transported by sea from the Kerawalapitiya Litro gas reservoirs to Hambantota.
An organization called the National Coalition for the Protection of Litro has also been set up to bring these issues to the attention of the government.
Explaining the crisis facing Litro today, its chairman Nalin Samantha said that the authorities should provide solutions to these problems.