Laugfs has won back part of its right to LP Gas production from the Ceylon Petroleum Corporation (CPC) after President Mahinda Rajapaksa intervened in the dispute this week.
Soon after Shell Gas exited from the market and was taken over by state-owned Sri Lanka Insurance and the product marketed under the brand name ‘Litro’, the CPC shifted gears and sold most of its LPG output to the latter.
Laugfs, in a filing with the Colombo Stock Exchange, said that ‘the CPC earlier had taken a decision unilaterally, without any official intimation to Laugfs Gas to sell LPG production of its refinery on the basis of the market share of the two companies involved, deviating from the exclusive arrangement to sell the entire LP Gas production to Laugfs Gas from the inception of the company.”
The statement said that at a meeting on Monday, the President had ordered that the CPC should sell 50% of its LPG production to Laugfs Gas with immediate effect.
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