Power Gas Lanka aiming to sell the cheapest LPG

Power Gas Lanka (Pvt) Ltd, the latest player to enter Sri Lankan LP Gas market, is to sell LPG at a reasonable price to local consumers. Chairman and Chief Executive Officer of the company Joseph Fernando told The Sunday Times FT the distribution of Power Gas Lanka cylinders has already begun. He disclosed that Power Gas Lanka (Pvt) Ltd has signed a MoU with a Malaysian counterpart to bring down gas at concessionary rates and the company is also planning to import gas from Thailand as well.

He said talks were held with Ceylon Petroleum Corporation (CPC) to purchase LPG and submitted their bids but it was temporary suspended due to some legal problems. Earlier CPC Chairman Asantha de Mel had announced that the corporation is planning to use the LP gas bottling plant of the now defunct Mundo Gas to enter the domestic gas market next year. The corporation is to double its liquid gas production in the next few months by up grading its existing facilities.

Fernando said that his company will submit fresh bids to the CPC after the legal issues are sorted out. The main gas filling centre of Power Gas Lanka (Pvt) Ltd is situated at Warakapola. Owing to the problems regarding transportation and administrative concerns, the company will shortly set up its filling centre with a storage capacity of 3000 metric tons at Uswetakeiyawa, Wattala, which is a sub-urban area, he said.

Fernando said that the initial investment of Power Gas Lanka (Pvt) Ltd was in the region of US$5 million and the company is planning to invest continuously to further strengthen the product to cater to the needs of Sri Lankans with good quality items. He noted that the pricing of the 12.5 Kg Gas cylinder would be approximately Rs. 100 less than other players in the market and Power Gas Lanka (Pvt) Ltd is expecting good demand for its product with this concessionary pricing. Customers would be able to buy the initial total gas package for around Rs. 4,500, which is far below what others are offering. He believes this initiative will cater to the growing demand in the gas market quite effectively. Power Gas Lanka is planning to appoint dealers and distributors island wide to take the product to customers door step.

Fernando has been involved in the auto gas business, the conversion of petrol vehicles to gas, since 1995.