Litro says it loses Rs. 2,000 from each LP gas cylinder

Despite having recommenced liquefied petroleum (LP) gas distribution from today, Litro Gas officials are warning that the state institution remains at risk of closure from a staggering Rs.2,000 loss on each cylinder.

Addressing a media briefing today, Litro officials, explaining the possible short-term consequences of this situation, said the sudden devaluation of the Rupee has further complicated its purchases at current market rates. The company said it is facing losses every month and that it has been getting increasingly harder to secure Sri Lankan rupees to purchase US dollars to clear shipments.

If we unload gas purchased at the February rate, we incur a loss of Rs. 200 million. If we calculate the March rate, which is USD 1,018, we will incur a loss of over Rs. 200 million. The decision was taken following the inability of the gas distributors in the country to secure the necessary foreign exchange to clear the LP gas shipments anchored in Sri Lankan waters.

However, yesterday’s state-owned distributor Litro Gas announced that it was finally able to secure US dollars to pay for and clear one shipment with the unloading process having commenced as of last evening.