Gas explosions

During the worst days this country faced in its contemporary history, now dimming in memory, of LTTE and JVP terror, people waited with trepidation for news of the number of deaths on any given day in the evening television news bulletins. The wheel has now turned a full circle and many people, during the last few days waited for word on how many gas explosions had occurred that day. Last week, Consumer Affairs Minister Lasantha Alagiyawanna admitted in Parliament that an average of 10 explosions were being reported daily. He admitted the fact that 40 percent of over five million households in the country were living in fear, wondering (like in the terror days, we might add) when another explosion would hit.

After much waffling and obfuscation by the gas suppliers – one state-owned and the other private – the responsible political authority has taken responsibility saying “We’re on the side of the consumer.” It could not have been otherwise, although such was not the case in the ill-thought chemical fertilizer ban where both the producer and consumer were hit. The president appointed a committee of inquiry, after 14 explosions and fires in a single day, setting a two-week deadline for a report. A cross-party parliamentary investigation at which gas supply company representatives were present happened later in the week. The expertise of the Moratuwa University and the laboratory of the Ceylon Petroleum Corporation has been mobilized. But their was no clear word as this is being written of how and why the country has been landed in this mess.

Litro Gas, a subsidiary of the state-owned insurance corporation, said soon after the fireworks started that gas explosions have been occurring for a number of years though not a frequently or as close to each other as in recent days. The gas supplier has taken out full page advertisements in the print media suggesting that technical faults in regulators, gas cookers etc. and negligence in kitchens may be partly attributable to what is happening.  But there is no escaping the reality that the problem intensified after the propane-butane composition of the gas pumped into cylinders have changed. There is scant comfort to be taken from the statement that there is no set criterion about these matters laid down by the Sri Lanka Standards Institution. But there is no credible explanation of why this is so and why the problem was allowed to exist for years without necessary regulatory action. Welcome news on Thursday was that the Public Utilities Commission of Sri Lanka was taking on the job. Better late than never.

But the inescapable reality is that changes in the composition followed increases in global gas prices with local price controls not adjusted accordingly. Laugfs was authorized to raise their prices while Litro, as an obvious concession to seething consumer anger of the dizzy rise in prices of everyday essentials retained previous price levels. Obviously the taxpayer will have to pick up the tab for the political establishment choosing not to be more unpopular. This was rather like something that happened in the petrol/diesel sector where LIOC raised prices while CPC maintained existing price levels. Obviously most motorists preferred to tank up at CPC while its competitor was happy to sell less because every liter sold at less than than the procurement cost eroded the bottom line. People chose the more expensive alternative only when there were shortages and they had brave long queues at filling stations. So also with gas when Laugfs cost more than Litro. But unlike petrol/diesel you had to have the right cylinder, be it blue or yellow, to get a refill from either supplier.

There have been a number of explosions since a gas cylinder exploded at an upmarket restaurant in Colombo on November 20 gutting the premises. Since then there have been dozens of explosions and fires countrywide, all of them grabbing headlines. For the past several weeks there have been cooking gas shortages inducing people to try to snap-up the few kerosene cookers available in the market or return to firewood cooking difficult in urban neighborhoods. “No gas” signs were freely visible everywhere and we’re told that some ships carrying supplies are due in the very short term. But in the context of the squeeze on the country’s foreign exchange reserves and the fear of fuel shortages thereby triggered, consumers fear continuing availability of supplies.

A Colombo datelined photograph of a man having his breakfast seated on a gas cylinder at a wayside restaurant was widely published globally illustrating a report of “mystery” gas explosions here. People have also not forgotten that it was not long ago that the then Chairman/CEO of Litro Gas refused to reveal his monthly emoluments, believed to exceed a million rupees. He told an inquiring reporter that this was a matter for the shareholders of the company and not the press. Since then his successor, presumably drawing similar emoluments,  chose to allege a gas supply Mafia. This drew a strong protest and a demand for an inquiry from the predecessor. There has been no word on whether there was such an inquiry and if so what has been determined. True, monthly pay cheques running into millions in today’s depreciated currency are not uncommon in the private sector today. But that is not yet true of the public sector although many a political bigwig costs the taxpayer that much and more if all their perks are quantified. But if Litro was/is spending millions on its top honcho, the public could rightfully expect a safe gas cylinder and stability of supply. But people today have to pour soapy water on gas regulators to see whether it bubbles and store their cylinders outdoors for fear of fire and explosions.