CAA to introduce pricing formula for LPG

Published : 12:01 am  August 28, 2018 | No comments so far |  | 

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By Chaturanga Samarawickrama   

The Consumer Affairs Authority (CAA) is hoping to introduce a pricing formula for domestic LP gas so as to reflect the price fluctuations in the world market, a senior official said.   

 

He said a pricing formula was implemented till 2013 but thereafter it had dropped out of use  for some reason or the other.    


“There will be no further increases in gas prices until the new formula is implemented,” the official said and added that future gas prices would be based on prices in the World Market.  After introducing the formula the domestic gas prices would be changed according to the prices at the World Market.   


“We have to consider elements such as gas purchasing costs, company overhead costs, costs for damaged gas cylinders, distribution, storage and several other costs,” he said.   


Litro and Laugfs gas companies had expressed their consent to the formula, he said.   


The official said the pricing formula would apply to both the local gas suppliers. 

 

There will be no further increases in gas prices until the new formula  is implemented and that future gas prices  would be based on the prices in the World Market

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