Gas Share

Mar 04, 2011 (LBO) – Sri Lankan liquid petroleum gas supplier Laugfs Gas is to lose exclusive rights to buy the entire LPG production of the state oil refiner Ceylon Petroleum Corporation, a government statement said. The supply deal with the CPC is also under an order of the Supreme Court and Laugfs also relies entirely on imports, with little impact on margins, during regular CPC refinery shutdowns for maintenance, it also said. The petroleum ministry said the government had struck a deal with Lithro Gas, a former Shell unit bought by the government, under which Lithro will get 72 percent of CPC gas production and Laugfs 28 percent.

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Petroleum ministry secretary Titus Jayewardena told Vimasuma.

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com, our sister news website, that the government had decided to share the CPC gas production based on the market shares of the two gas retailers.

Laugfs Gas chairman W K H Wegapitiya lashed out at the decision saying they had received neither written nor verbal official notice of the decision.

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“It is unethical of the government not to have informed us despite a supreme court order that entitles Laugfs to the LPG production of the Ceylon Petroleum Corporation,” he told

Laugfs Gas listed on the Co

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