Litro commences servicing USD 70 Mn loan from World Bank as domestic gas prices further reduced

The Chairman of the Litro Gas Company, Muditha Peiris announced today that the state-run agency commenced the process of settling a USD 70 million loan obtained from the World Bank as prices of domestic gas prices are reduced in keeping up with international gas prices.  
 
From the USD 70 million borrowed from the World Bank through the Treasury and Ministry of Finance, Rs 6.5 billion has already been paid, with another  Rs 8 billion scheduled to be paid in October, and the rest of the amount to be paid in full by December. 
 
This was announced in a press conference held on Wednesday (October 5) at the Litro Gas Corporate Office, where the Chairman also announced the new reduced prices of Litro gas cylinders. 
 
In accordance with international gas prices and the price formula, the 12.5 kg gas cylinder has been reduced by Rs. 271, the new price being Rs. 4280, the 5 kg gas cylinder was reduced Rs. 107, the new price being Rs. 1720 and the 2.3 kg gas cylinder was reduced by Rs. 48 to the price of Rs. 800 and these price changes will be in effect from 12 AM of Thursday. 

Being the the third consecutive monthly reduction of domestic gas prices, last month, Litro reduced the prices by Rs.113 (12.5kg), Rs. 45 (5kg) and Rs.21 (2.3kg). 

Similarly in August, Litro reduced prices of 12.5kg gas cylinder by Rs. 246, the prices of 5kg cylinder by Rs.99 and the price of 2.3 kg cylinder by Rs.45. 

In April, this year Litro announced a massive hike increasing the price of a 12.5kg gas cylinder by Rs.2185. The price of a cylinder went up from Rs.2675 to Rs.4860. The price of a 5kg cylinder also saw a big increase from Rs.874 to Rs.1945. 

The Chairman also thanked the Presidential Office Head Sagala Rathnayake, the Ministry of Finance and the Consumer Affairs Authority for heeding the Litro Gas request to introduce a price formula for gas. 
 
“We have done the calculations and it is cheaper to use gas under revised prices with thrift than other complements”, the Chairman stated regarding consumers who have switched to utilizing complements such as electricity, wood or kerosene. 
 
Reminding that Sri Lankans living overbroad can pay in dollars to purchase gas cylinders to be provided for Sri Lankan acquaintances, he stated that it would be a contribution to resolve the dollar problem. 
 
“We hope it will develop and expand, so that we can import a ship or two through the dollars acquired through such means”, the Chairman added. 
 
The Chairman expects that the price reductions will bring about relief to the people who are burdened by the economic crisis, while the company also earns a fair small profit from the sales. 
 
However, he also stated that the company is keeping a fair small amount as profit, while providing relief to the people, “continuing as a strong state institution”, the Chairman added. 
 
“The institution is running stable and robust, while providing relief to people, as a strong state institution”, added the Chairman, emphasizing on the importance of the price formula in providing relief to the consumers.  (Pix by Indika Handuwela)