Red Bottom

Shell Gas Lanka Ltd, a unit of Royal/Dutch Shell Group, warned Sunday that gas supplies may stop because company losses ballooned to Rs. 742 million after the authorities resisted calls for a retail price increase. Shell Gas Lanka Ltd, a unit of Royal/Dutch Shell Group, warned Sunday that gas supplies may stop because company losses ballooned to Rs. 742 million after the authorities resisted calls for a retail price increase. Sri Lanka’s largest liquid petroleum (LP) gas supplier says it is losing money, as current retail prices are fixed at Rs. 875 per 12.5 kilo cylinder in line with a price control mechanism decided by the government.

Shell, which also did not pay the customary staff bonuses, last month, says a 12.5 kilo LP gas cylinder has to be sold at Rs. 1,050, for the company to break-even.

Surging crude oil prices have pushed world LP gas prices to US$ 582 per metric tonne in January, which is five-percent over the corresponding period in 2005, Shell said in a statement.

“The rapid increase during the last quarter of 2005, continuing into 2006, reflects a combined impact of winter-driven seasonal demand and prevailing high crude oil prices,” it said, while noting that their accumulated losse