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Litro goes for bulk buying to end gas queues

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Litro Gas Lanka yesterday announced that it was looking at the possibility of bulk buying as opposed to ad-hoc purchasing to manage the domestic demand.

A spokesperson for Litro Gas Lanka said that the government had given the green light for pursuing the proposed plan to mitigate the current crisis: “Litro Gas Lanka caters to the demand from BOI, Export Processing Zones and other export-oriented industries, and sectors that are critical to the economy and bring in much-needed forex. Litro Gas Lanka single-handedly managed to cover the country’s critical industries – including the HORECA category – undertaking the challenge of catering to its own demographic as well as the market segment dependent on its competitor, the only other LPG supplier, for the duration of 3-4 months it was unable to actively meet the demand.”

Detailing the negotiation process for the contingency order, he said that SIAM Gas of Singapore offered the lowest rate of USD 96 as the shipping cost for a Metric tonne of LPG for the 2022/2023 tender but failed to release the consignment until a standby Letter of Credit (SBLC) to the value of USD 30mn was furnished. Further, SIAM Gas had also informed that the required quantity of 15,000 MT couldn’t be provided but 6,600 MT could be arranged instead, 10 days from the date of LOC. It was also informed this consignment would be provided at USD 112 instead of formerly quoted USD 96.

As such, Litro Gas opted for the second lowest bid of a minimum quantity of 100,000 MT at USD 129 from Omani Trading (OQ Trading), based on the decision taken at the Cabinet meeting held on June 8 – taking into account the feasibility and time considerations. The USD 17 difference between the two aforementioned bidders translates to less than Rs. 80 per cylinder, which is not a significant burden proportional to the inconvenience faced by the public due to lack of LPG in the market.

Litro Gas Lanka wished to clarify that SIAM Gas was left out from this contingent purchase not due to an issue involving commissions, as falsely claimed by certain media reports, but rather due to the stipulations and demands put forward by the supplier at this critical juncture. Logistical limitations, such as not having adequate vessels for delivery, was also a reason for ruling out SIAM Gas as a supplier for the contingency shipment, as well as the long term. The total requirement would have needed four vessels, over a period of six weeks, which SIAM Gas could not confirm. Even the vessel allocated for the Spot (contingency) was over 26 years old. These factors, too, contributed to Litro Gas looking for more reliable, dependable suppliers for the short and long terms.

The initial approval to secure LPG from SIAM Gas was granted by the Cabinet, two months ago, during the tenure of the previous Chairman, but did not materialize and it was against this backdrop that the tender was awarded to the next best alternative, OQ Trading, to expedite the process.

During the period Nov 2019 to Dec 2022 it has cost Litro Gas Lanka a staggering Rs.11.1 billion to maintain the price of an LPG cylinder at a constant rate so that LPG was affordable to the average household, which coincided with COVID-19 lockdowns.

Litro Gas Lanka is one of the most profitable SOEs in Sri Lanka, employing a cadre of only 225 permanent staff which is a testament to its efficiency and productivity. The enterprise made available an unprecedented dividend of Rs. 13 bn during the last decade to the National Treasury which is generally used for nation-building activities.

Furthermore, Litro Gas Lanka fulfilled its obligations as a socially responsible corporate by paying Rs. 34.5bn as taxes during the past decade.

As the national provider of LPG, Litro Gas Lanka requests cooperation of all stakeholders to swiftly resolve the present crisis and restore normalcy.



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All set for Colombo rally against govt.’s tax policies

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People’s Struggle Movement’s National Executive Council members Wasantha Mudalige and Jayantha Amarasinghe speaking to the media yesterday

The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.

The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.

People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.

Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.

He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.

Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.

He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.

He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).

The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.

Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.

People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.

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Yoshitha R money laundering trial postponed

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The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.

The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.

The trial was postponed as the President’s Counsel appearing for the defence was indisposed.

The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.

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Lankan troops test mettle in Russian war games

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Lankan Army troops participating in Exercise ‘Wolverine Path II–2026’ in the Russian Federation

A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.

According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.

The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.

The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.

It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.

The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.

The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.

The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.

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