News

News

Mundogas users left high and dry
By Mahangu Weerasinghe
The estimated 100,000 consumers of Mundogas have been unable to get their cylinders refilled since March this year. The shortage of gas has affected Mundogas distributors as well, many of them having incurred losses of over a million rupees.

Mundogas Lanka (Pvt) Ltd commenced business in January 2003 with the promise of providing gas to the public at a price significantly lower than the market price at the time. However, according to the Mundogas All Island Distributors Association (MIDA), the first shipment, which arrived in June 2003 lasted only three months.

"A second shipment arrived in December 2003, but lasted only till March 2004," said the association president Amal Dharmaratne. Since the end of March, distributors have not been able to find LP gas for their customers.

He stated that despite repeated appeals to the management of Mundogas, no action had been taken . Director of Consumer Affairs and Information at the Consumer Affairs Authority, Mrs. Chandrika Tillekeratne said that the CAA had as yet received "no explanation from Mundogas Lanka about the non-availability of gas." However, Mrs. Tillekeratne confirmed that her office received an official complaint from Mundogas distributors on June 16.

"Based on previous consumer complaints however, we have already asked Mundogas to regularize their supply," she said. Speaking to The Sunday Times, CEO of Mundogas P. Benin, rejected all allegations made by MIDA, stating that the management was ready at all times to look into the difficulties faced by distributors and consumers.

Mundogas chairman A. Wickramanayeke told The Sunday Times that steps had been taken to ensure the supply of gas is recommenced. He further stated that the last shipment of gas had arrived in Galle in May, but the ship was not allowed to dock at the port. He was not able to identify the source of this obstruction.

Former Commerce and Consumer Affairs Minister Ravi Karunanayake said that the blockage at the port was undoubtedly a "political problem that occurred after the establishment of the new government."

Stating that he only had a hand in bringing the company to Sri Lanka, the former minister also stated it was obvious that "unfair competition was taking place." Mr. Karunanayake declined to name the root of this unfair competition.

Amid allegations of unfair competition from various parties, The Sunday Times spoke to Dr. Ranasoma, Corporate Affairs Director of Shell Gas Lanka (Ltd), who dismissed the allegations, calling them "totally baseless." Dr. Ranasoma said that Shell Gas would always "welcome competition on a fair and level playing field."

Top

Back to News