Financial Times

Shell says cylinders can be used by state suppliers
Shell Gas, under fire by the authorities for seeking a price revision amidst galloping world prices, said last week it was prepared to allow its cylinders to be used to fill any gas imported by the government.

Dr. Mahesha Ranasoma, the company’s Director of Corporate Affairs, said they had no objection if the government was able to supply LPG at a cheaper price – in which case the consumer benefits.

“... We will enter into an agreement and are prepared to make available all the facilities, staff, cylinders, expertise and other resources to the government to implement it immediately. The government will only have to provide the raw material,” he said in a statement.

This came as the raging dispute over Shell’s request to raise prices continued over the week. The government says it’s discussing with Shell some options but has so far refused the request to raise prices. Commerce Minister Jeyaraj Fernandopulle has said he was discussing with other Middle East countries and suppliers ways in which the government could import the gas at cheaper rates.

Shell has said it may have to curb supplies in the wake of rising losses. The Shell spokesman said that while they wanted to avoid such a shortage they also had an obligation to their stakeholders. Half the company is owned by the government.

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