A gas price revision from July 1

By Nirmala Kannangara

Laugfs and Shell gas companies have made applications to the Consumer Affairs Authority (CAA) in early June seeking a price revision on domestic gas effective from July 1.

Despite the gas companies declining to reveal what their anticipated prices would be, domestic gas prices are to go up further from July 1, The Sunday Leader learns.

Director Finance, Shell Gas Company, Rimoe Saldin said that Shell gas has made an application to the CAA for a price revision on a domestic gas cylinder from July. However he said that till the CAA made the final decision he was not in a position to say whether the request would be granted or not.

"According to the pricing formula, we sent the data to the CAA early this month as the gas companies could request a price revision once in two months. Accordingly we made an application for a price revision from next month based on the world fuel prices and freight charges," Saldin said.

According to Saldin although he was positive of a price revision he was not sure what the exact figure would be.

"The price revision is based on the world oil prices in April and May and the price adjustments would depend on these prices," added Saldin.

However Managing Director Laugfs Holdings, Thilak de Silva said they too have made an application to the CAA according to the pricing formula agreement but said that he was positive that there wouldn't be a price hike this time.

"Laugfs too made an application to the CAA early this month but we are positive that there would not be a price rectification this time," De Silva stated.

Meanwhile Chairman, CAA, Rumy Marzook added that Shell and Laugfs gas companies have made applications to the CAA for a price revision from next month but refused to comment as to what the revised prices would be.

"It is being reviewed at the moment," Marzook said.