Ministry and Shell in gas price fight

By Malik Gunatilleke

Shell Gas is pushing for another major increase in the price of LP gas but the Trade Ministry is also taking a strong stand against it. On March 1, Shell Gas increased the price of a 12.5 kg cylinder by Rs 261, though it had asked the Consumer Affairs Authority for permission to increase the price by Rs. 389.

The price of a 12.5 kg cylinder is now Rs. 1749 but Shell wants to increase it to Rs. 1877 on the basis that freight charges have gone up. But the Trade Ministry realising the shocking impact of the March 1 increase and the major crisis caused by the ever-soaring cost of living is refusing to allow another price hike on the basis that Shell is transporting gas through one of its subsidiary companies.

Shell Finance Director Rimoe Saldin said that although gas was being transported by a subsidiary company Shell still had to pay the extra cost. But Trade Ministry Secretary R. M. K. Ratnayake rejected the claim and said the government would not allow another price hike until it fully studied the Shell Company’s claims of extra cost.