Political Gas

Legislators included an outdated provision from the old Fair Trade Commission law when a new Act for consumer protection was passed a couple of years ago. Legislators included an outdated provision from the old Fair Trade Commission law when a new Act for consumer protection was passed a couple of years ago. Government is now using this provision in the Consumer Affairs Law to cap prices of some goods.

Critics however say free markets are the best protection consumers can have in the long term.

LP Gas users have been enjoying subsidies for the last six months. But it’s not the government that has been paying for it. For the last six months Shell Gas and Laugfs Gas have been unhappily subsidizing their users.

Political watchers say populist measures like subsidies help government become popular although they deprive economies of long-term growth opportunities.

But Laugfs and Dutch multinational Shell Gas Lanka are not seeking to win consumers with low pricing.

They would like to raise pries.

The Consumers Affairs Authority (CAA) was set up to protect consumers by regulating prices and also protect traders and ma