Sri Lanka’s state managed Litro Gas Plc makes emergency purchase of 12,000 metric tons of LP gas
Sri Lanka’s state operated Litro Gas Plc has reportedly made an emergency purchase of 12,000 metric tonnes of liquefied petroleum (LP) gas to address the short supply of LP gas in the local market.
A ship with 3,600 metric tons of LP gas has reached Colombo last Saturday (2) and another ship with 3,600 MT was to reach the country yesterday (5) and yet another is expected on Saturday (9), Sri Lanka’s Finance Ministry has said in a statement.
Also, a ship with 6,000MT of LP gas ordered under standard procurement is to also reach Colombo during the week.
According to reports, there was a shortage of LP gas in the market after a supply disruption at the country’s second supplier of domestic LP gas, Laugfs Gas.
“The emergency purchases will clear the shortage,” the Finance Ministry has stated, adding, “People should not have undue fears.”
The Ministry has further stated that the Consumer Protection Authority had raided 40 dealers who were selling gas at higher prices in the black market.
OSL take:
Sri Lanka’s domestic LP gas market is currently facing a shortage due to the shortfall in supply by the second player in the Sri Lankan market. The state operated LP gas distributor has now been compelled to make emergency purchases. Authorities in Sri Lanka are now facing issues in its LP gas supply chain due to the existing duopoly. Foreign LP gas suppliers could explore business/investment opportunities in Sri Lanka’s LP gas market by either supplying LP gas or even looking at proposing the entry of a third entrant to the domestic market.
| Article Code : | VBS/AT/20191107/Z_5 |