News
Litro seeks LPG price increase amidst spike in global pricing
Rs. 1.5bn loss per month
By Suresh Perera
An increase in the price of Liquid Petroleum Gas (LPG) is now on the cards to offset a staggering loss of Rs. 1.5 billion per month incurred by Litro Gas Lanka in the backdrop of a spike in global pricing, which a senior industry official described as a “crippling blow”.
“We have to incur a loss of Rs. 700 on every domestic LPG cylinder sold in the market”, says Janaka Pathirathna, the company’s Director, Sales & Marketing/Corporate Affairs.
He said that the approval of the Consumer Affairs Authority (CAA) has already been sought to push up LPG prices, but there was still no formal decision on the matter.
Asked about the quantum of the price increase sought by Litro Gas, he replied, “Though we have indicated that a Rs. 700 loss is being incurred per domestic cylinder, it’s left to the government to determine the new pricing structure”.
Losses are steadily mounting as domestic cylinders account for the lion’s share of 80% of the total market, Pathirathna stressed.
“The more we sell, the more the financial losses we have to grapple with”, he complained.
Asked about industrial LPG cylinders, he replied, “We sell them at the procured price without a mark-up”.
He said that Litro Gas Lanka maintained stable prices for more than a year despite escalating global prices.
International LPG prices have now ballooned to US$ 600 per metric ton, he noted.
With the Covid-19 pandemic impacting markets across the world, coupled with currency fluctuations, international prices of LPG as one of the world’s most widely used energy sources have seen volatility.
According to Argus Independent Commodity Price Reporting Agency, the leading independent provider of energy and commodity price benchmarks, rising prices and uncertain economic forecasts overshadow the LPG industry globally.
The Argus pricing benchmark ‘Argus Far East Index’ is used widely in Asia, while Saudi Aramco Index is also used in countries such as Sri Lanka.
LPG is more than a commodity in Sri Lanka – it is an economic indicator that keeps home fires burning and multiple industries running, says Anil Koswatta, Chairman of Litro Gas Lanka,
“We understand the importance of passing on the economic benefit to the end-user as outlined in the government’s vision for the nation. As a result, despite currency fluctuations and LPG prices moving up worldwide, we have consistently maintained our prices in accordance with this vision”, he emphasized.
While it is difficult to predict the pricing structure due to external factors, global indicators such as fluctuating world LPG prices, currency fluidity and industry demand may result in price variations, Pathirathna said.
On the way forward for LPG markets amidst the pandemic, Argus Report says that growth is expected in 2021 resulting in spiraling prices possibly continuing until the end of the year. While seasonality will also drive demand, Argus Report also acknowledges that petroleum price reversals are likely to result in uncertainty of global LPG prices.
Industry experts affirm that while in the developing world, LPG is primarily used for domestic cooking, in the developed world, it is used widely for indoor heating.
“As the national LPG provider, Litro Gas Lanka understands the importance of stabilized pricing. However, rising international prices and enhanced international shipping and freight rates could further burden us”, Pathirathna added.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
