Dec 30, 2009 (LBO) – The Sri Lankan unit of the Shell gas multinational said it was holding domestic prices of liquid petroleum gas cylinders despite higher import costs as the government had cut taxes. The announcement came as the Trade and Consumer Affairs Ministry said the other supplier Laugfs Gas will cut its prices ahead of presidential polls on January 26, following price cuts in a range of other essential commodities like petrol and sugar.
Shell Gas Lanka said in a statement it will maintain domestic prices of LPG gas at 1,550 rupees for a 12.5 kilogramme tank and at 285 rupees for a 2.3 kilo cylinder.
These prices are based on the import cost for the months of October and November 2009, which was an increase over the preceding period.
However, the excise duties on LPG have been reduced by the government with effect from January 1, 2010 resulting in the company maintaining existing prices for domestic LPG cylinders.
Shell said the Consumer Affairs Authority continues to determine selling prices without incorporating the full cost of freight incurred by Shell Gas Lanka to import the product.
As a result, the firm said it continues to bear the loss on freight cos