Round One

Shell Gas Lanka will jack up prices on a 12.5 kilo cylinder by Rs. 94 with effect midnight tonight, following the green light from watchdog the Consumer Affairs Authority. Shell Gas Lanka will jack up prices on a 12.5 kilo cylinder by Rs. 94 with effect midnight tonight, following the green light from watchdog the Consumer Affairs Authority.

A 12.5 kilo cylinder of Liquid Petroleum Gas (LPG) will now retail at Rs. 894, while a 2.3 kilo cylinder will go up from Rs. 162 to Rs. 183, Shell Gas said in a statement on Friday.

The company – a unit of the Royal Dutch Shell Group, has been lobbying for a price increase since last September to cover soaring global gas prices.

The increase takes into account international LPG prices in April and May this year, averaging at US$ 420 a MT. This is a US$ 80 increase since last September, the company said.

Price of 12.5 kilo cylinder was raised by Rs. 96 to Rs. 789 last September, the last big increase, with prices going up again by Rs. 11 about a month ago.

With the CAA shooting down repeated price requests, a six month lag in prices blew a Rs. 350 mn hole in Shell Lanka’s balance sheet last year.

Local gas p