Profits Evaporated

Local gas consumption is expected to slide further following recent price hikes, but market mover, Shell, says it is still loosing millions of rupees each day. Local gas consumption is expected to slide further following recent price hikes, but market mover, Shell, says it is still loosing millions of rupees each day. Shell Gas Lanka Ltd., Sri Lanka’s dominant LPG supplier upped prices by Rs. 96.00 to Rs. 789 for a 12.5 kilo cylinder from Monday.

Consumption usually takes a dip whenever prices are raised, falling by as much as 20 percent to 30 percent, as people shift to fuel wood.


But Shell noticed a three percent increase in sales during the June-July period, as monsoon weather forced people to shift to cooking gas. Shell was also enjoying a government subsidy at that time, making it easy on the purse, explains Renuka Jey Raj, Shell’s Media & Communications Manager.

But the picture changed from Aug 2 price hike onwards, with volumes dropping by around three to five percent for a 12.5 ki