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CAA withholds gazette notification on Trade Minister’s reduction of 18-litre LPG cylinders

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‘There was no Cabinet decision as claimed’

by Suresh Perera

The gazette on the reduction of the price of an 18-litre hybrid domestic cooking gas cylinder by Rs. 245, as announced by Trade Minister Bandula Gunawardena, has been withheld by the Consumer Affairs Authority (CAA) after it was discovered that the Cabinet has so far not made any recommendation on re-adjusting the existing pricing, a senior official said.

The Minister told the media last week that the price of the controversial LPG hybrid cylinders introduced to the market by Litro and Laugfs Gas have been reduced “following a Cabinet decision”.

“We will not be issuing a gazette notification to implement the price reduction as documentation sent to us by the Trade Ministry indicated that a Cabinet decision on the matter was still pending”, CAA’s Executive Director, Thushan Gunawardena said.

A gazette notification to give legal effect to such a price reduction cannot be published without a clear cut recommendation from the Cabinet, he pointed out. “It should be in black and white”.

He said that in terms of the documentation sent to the CAA from the Office of the Cabinet of Ministers via the Trade Ministry, the Cabinet paper, dated July 5, 2021, presented by Minister Gunawardena to the Cabinet on July 12, 2021 on the subject of reducing the price of 18-litre domestic LPG cylinders, was deferred until the next meeting on a request by the Finance Minister.

Gunawardena said the Minister’s statement to the media was misleading as it was clear that the Cabinet has still not decided on the matter.

“There would have been a load of trouble if we had gazetted the claimed price reduction without first scrutinizing the documents sent to the CAA”, he explained.

“We have clear instructions from the Attorney General’s Department not to recognize the 18-litre hybrid cylinders as they were introduced to the market in contravention of consumer protection laws”, he noted.

The contents of each 18-litre cylinder works out to 9.18 kilograms, which means that, unlike the 12.5kg cylinders, heavy vehicles will have to make more trips from point A to B to distribute them and replenish stocks, the Executive Director elaborated.

“At the end of the day, it will contribute towards increasing Sri Lanka’s carbon footprint”.

The launch of the new 18-litre domestic cylinders triggered protests by consumers and interest groups as a 12.5-kilogram cooking gas cylinder is sold for Rs. 1,493 in the market, whereas the 9.18 kilogram product was priced at Rs. 1,395 in spite of the weight being reduced by three kilograms.

It boils down to consumers being offered three kilograms less for a mere one hundred rupees cheaper than a regular 12.5-kilogram, industry officials said.



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GL follows up Udaya’s initiative, negotiates concessionary crude oil supplies with UAE

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Balance-of-payment crisis continues to stagger govt.

By Shamindra Ferdinando

The United Arab Emirates (UAD) has agreed to discuss a possible arrangement to provide Sri Lanka crude oil on concessionary terms in the face of the country experiencing a severe balance-of-payments crisis, according to the Foreign Ministry.

Foreign Minister Prof. G.L. Peiris took up the matter with UAE Minister of Industry and Advanced Technology Dr. Sultan Al Jaber, on the sidelines of the 76th session of the United Nations General Assembly (UNGA) in New York. Prof. Peiris is on President Gotabaya Rajapaksa’s delegation to the UNGA.

In late August, Energy Minister Udaya Gammanpila sought the intervention of the Acting Head of the UAE Embassy in Sri Lanka, Saif Alanofy. Minister Gammanpila also met the Iranian Ambassador in Colombo in a bid to explore the possibility of obtaining oil from Iran on concessionary arrangements.

The Foreign Ministry statement on Prof. Peiris meeting with the UAE Minister dealt with the financial crisis experienced by the country. “Foreign Minister Peiris explained the challenges Sri Lanka is experiencing in respect of its external budget, as a result of the COVID-19 pandemic. Prof. Peiris focused in particular on the country’s requirement for oil and requested concessionary arrangements from the UAE.”

The Foreign Ministry quoted Minister Al Jaber as having said that the UAE would be happy to assist and proposed the establishment of a strategic framework to take the process forward.”

The ministry stressed that both sides agreed to follow-up rapidly.

Energy Minister Udaya Gammanpila earlier told The Island that concessionary arrangements were required to procure oil as part of an overall strategy to overcome the developing crisis.

Pivithuru Hela Urumaya (PHU) leader and Attorney-at-law Gammanpila said that increase in fuel prices in the second week of June this year was only a part of the government’s response to heavy pressure on foreign reserves. Minister Gammanpila said that the decision was taken close on the heels of dire warning from the Central Bank.

Minister Gammanpila said that in spite of foreign currency crisis, the government ensured an uninterrupted supply of fuel. According to him, Sri Lanka spent as much as USD 3.5 to 5 bn annually on oil imports depending on the world market prices.

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President attends 9/11 commemoration in NY

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President Gotabaya Rajapaksa yesterday attended the special commemorative event near the Manhattan Memorial in the United States to mark the 20th anniversary of terrorist attacks in Washington and New York.

The terrorist attacks took place on September 11, 2001, targeting the World Trade Center in New York and the Pentagon, the headquarters of the United States Department of Defence.

Coinciding with the 76th Session of the United Nations General Assembly, the United Nations Office of Counter-Terrorism and the 9/11 Memorial Museum jointly organised the event. Other Heads of State and government representatives, who were in New York to attend the UN General Assembly, were also present at the event to pay tribute to those who lost their lives in those attacks.

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FSP calls on govt. allies not to pretend to oppose adverse deal with US firm

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By Anuradha Hiripitiyage

Due to the secret agreement signed with US firm New Fortress Energy, Sri Lanka would soon face a situation akin to the one already faced by Ukraine, the Frontline Socialist Party (FSP) predicted yesterday.

“Sri Lanka is trying to reduce its dependency on coal and switch over to LNG. With this in mind, several coal and diesel power plants are to be converted into LNG in the coming decade. Now, we will entirely depend on the US to provide us with LNG to power these plants. Given that the US intends to control the seas in which Sri Lanka is placed strategically, they will not let us off the hook once they establish their foothold here. We are in deep trouble,” FSP Propaganda Secretary, Duminda Nagamuwa said.

Nagamuwa said that some constituents of the government were pretending that they opposed the transfer of government’s shares in the Yugadanavi Power Plant to New Fortress Energy. “But this is not the time for theatrics but for concrete action”, he said.

Nagamuwa said that the agreement between the government and US Company New Fortress Energy to construct a new offshore liquefied natural gas (LNG) receiving, storage and regasification terminal at Kerawalapitiya as well as the transfer of government’s shares in the Yugadanavi Power Plant had to be scrapped.

“Even government ministers agree that the agreement was not discussed with them. Several affiliates of the government are trying to convince the people that they are fighting this decision from inside. However, past experience has shown that when push comes to shove they will stay with the government. They must show the leaders of the government that they are not puppets,” he said.

Nagamuwa said that if those affiliated to the government were serious in their opposition to undermining Sri Lanka’s energy security they should show their commitment by doing something concrete.

The Yugadanavi Power Station at Kerawalapitiya already produced 300 MWs of energy and there was a plan to build another 350 MW plant there. The US Company had now been allowed to build an offshore LNG receiving, storage, and regasification terminal and to provide LNG to the existing Power Station and the new 350 MW power plant to be built, he said.

“Now we are under the power of the US. We will soon be facing the plight of Ukraine,” he said.

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