CAA reverses decision to file legal action against Litro Gas

For introducing controversial hybrid LPG cylinder

by Suresh Perera

The Consumer Affairs Authority (CAA) has backtracked on moves to file legal action against Litro Gas Lanka for launching 18-litre premium hybrid domestic LPG cylinders in contravention of consumer laws.

The Chairman was not in favor of moving court on the matter due to political pressure, a senior CAA official said.

The move to desist from legally challenging Litro’s launch of the new hybrid cylinder to the market without the regulator’s approval comes in the backdrop of State Minister Lasantha Alagiyawanna’s intervention to allow the controversial product to be sold to consumers at its introductory price of Rs. 1,395.

“What’s the purpose of a regulatory body if politicians can interfere with CAA’s legally mandated functions to protect the interests of consumers?”, the official asked.

The selective application of the law will boil down to seeking approval from politicians on whether legal action should be instituted when even a grocery store is raided for violating regulations, he said.

“The law is the same, and if are to take punitive action by favor, then the CAA will be a dead duck bowing down to political dictates”, he opined.

Litro Gas has come under fire for introducing new hybrid domestic cylinders for Rs. 1,395 in spite of the weight being reduced by three kilograms in comparison to the regular 12.5 kilogram cylinders priced at Rs. 1,493.

“We have already received hundreds of complaints about a shortage of 12.5kg cylinders in the market as Litro is trying to push its new hybrid cylinders”, the official said.

“This is unethical”.

A resident of Kirillawala in the Gampaha district complained that only hybrid LPG cylinders were available over the past few days.

“I was told by the Litro dealer in the area that stocks of 12.5kg regular cylinders will not be received for some time”, he said.

However, Litro Gas Chairman/CEO, Anil Koswatte assured that there was no dearth of LPG in the marketplace.

When told that technically there may be no shortage of cooking gas, but on whether regular 12.5kg regular cylinders were also available apart from the new 18-litre premium hybrid product, he said that there may be delays in deliveries due to the prevailing situation, but both domestic cylinders are freely available.

Consumers can also order online or by calling 1311 for delivery, he said.

The LPG production process is continuing uninterrupted despite many challenges posed by the pandemic. Workers adhere to health safety regulations and are regularly screened and provided accommodation to prevent contact with outsiders who may be infected, he continued.

With ballooning global LPG prices, Litro Gas Lanka incurs Rs. 300 to 400 million in losses per day as the government has turned down an appeal for a Rs. 700 price increase on domestic cylinders.

The new hybrid 18-litre domestic cylinder was introduced to the market to cut losses as LPG is now sold below procurement cost.

Asked about the claim in a YouTube video shared on social media that he draws a remuneration of Rs. 3 million per month at a time Litro is facing a financial crunch, Koswatte declined to comment on what he termed as “gossip to sling mud at him”.

The presenter of the YouTube program, Chapa Bandara, claimed that Koswatte draws a monthly salary of Rs. 2 million from Litro Gas Lanka Limited and Rs. 1 million from Litro Gas Terminal Lanka Ltd.

“I am not paid with government funds”, he noted, while pointing out that both are private companies.

“My salary is a matter for the shareholders to decide on”, he stressed, while adding that his salary should not be of concern to anybody as it’s purely a private matter.

The Chairman said that if he responds to tittle-tattle, it will create the impression that he also thrives on gossip.

Presenter Bandara also asserted that a woman who served as the General Manager at the time Koswatte was Chairman of Laksala has been appointed Director (Human Resources) of Litro Gas.