Against a backdrop where consumers have been facing severe difficulties for nearly three months due to the inability to find a LAUGFS gas cylinder, the Consumer Affairs Authority (CAA) has taken steps to enforce the law against LAUGFS Gas Company for failing to maintain a continuous supply. According to a complaint filed in the Aluthkade Magistrate's Court under the provisions of the Consumer Affairs Authority Act No. 09 of 2003, a summons has been issued to the company, and the case is scheduled to be called on November 11.
Authorities had previously and repeatedly informed the company to take steps to maintain a continuous gas supply. In response, LAUGFS stated that gas-carrying vessels were arriving but had been delayed. However, consumers are strongly questioning why a giant company, which holds 30% of Sri Lanka's domestic and commercial gas market, 60% of the industrial bulk market, and 85% of the autogas market, could not maintain a continuous supply. This shortage has put distributors as well as the general public under severe pressure, especially given that LAUGFS also possesses automated facilities capable of filling 30,000 cylinders of various sizes daily.
Tracing the root of this crisis also reveals the supply issues faced by the company. One major reason for this is the difficulty in obtaining gas stocks containing butane and propane in the required proportions for Sri Lanka. LAUGFS' attempt to obtain small quantities of gas from a supplier to Litro Gas Lanka Ltd. has also been unsuccessful. Although LAUGFS has facilities to mix these two types of gas at its Hambantota terminal, according to contractual terms, they can only release a limited amount of 20% to the domestic market.
LAUGFS has requested on several occasions to increase this 20% market limit. During the crisis last December, the then Minister of Trade, Wasantha Samarasinghe, had granted them some relief. However, when the supply chain broke down again last April, the Minister rejected the company's request to release gas exceeding the 20% limit for hotels, factories, or the market. He emphasized that such an allowance could not be granted illegally and that the domestic gas supply must be ensured without inconveniencing consumers. As an alternative, steps were taken to increase Litro gas supply and release blue empty cylinders to the market.
The direct impact of the LAUGFS shortage has now fallen on Litro Gas Lanka Ltd. across the entire market. According to Cabinet Spokesperson and Minister of Health, Dr. Nalinda Jayatissa, this situation has affected the market since September, causing the daily demand for Litro gas to increase from 1,100 metric tons to 1,600 metric tons. To cope with this, Litro has increased its daily cylinder distribution from the usual level of 74,000 to between 90,000 and 100,000, an increase of 22% to 35%. Currently, a 3,000 metric ton Litro gas vessel is being unloaded, and another 3,900 metric ton vessel is expected to arrive on the island by October 31.
However, no matter how much the government increases Litro's supply, it is not a direct solution to the problem of LAUGFS consumers. The reason is that a user of a LAUGFS cylinder cannot easily switch to Litro gas. When returning a LAUGFS cylinder, the company has agreed to refund the consumer only a small amount of approximately Rs. 1,000, based on its usage period and depreciation. However, purchasing a new Litro cylinder requires spending over Rs. 10,000. It is a severe injustice for the average consumer, who faces a gas company's crisis through no fault of their own, to bear such a significant additional financial burden to switch to another alternative.
If a LAUGFS gas cylinder can somehow be found in the market, a 12.5kg cylinder currently sells for Rs. 4,965, a 5kg cylinder for Rs. 1,988, a 2kg cylinder for Rs. 795, and a 37.5kg cylinder for Rs. 20,000. However, the hardship faced daily by thousands of families due to the lack of continuous supply, forcing them to seek alternative fuels, is indescribable. All gas consumers are now closely watching the outcome from the Aluthkade court on November 11, following the legal steps taken by the Consumer Affairs Authority to protect consumer rights.
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