LP gas prices increased in Sri Lanka due to global gas price surge – Minister Vijitha Herath

Prices for domestic LP gas in Sri Lanka have gone up because of a rise in global gas prices, as stated by Minister Vijitha Herath. During a media briefing with the Cabinet today (07), Minister Herath explained that the increase in worldwide gas prices was based on the Saudi Aramco price index, leading to changes in local gas pricing. He reassured the public that there has been no disruption in gas supply. Under the new government contract, gas is no longer sourced from the Middle East, with 80% now coming from the United States and 20% from South Africa, as mentioned by the Minister. Minister Herath pointed out that the limited storage capacity in Sri Lanka has also added to the higher costs. Currently, gas is being temporarily stored in the Maldives before it is brought to Sri Lanka. This method, along with importing gas every three days, raises additional expenses, contributing to the price hike, according to Minister Herath. He further noted, “The LPG price index has gone up around the world. The Saudi Aramco index rose from $541.5 per metric ton to $787.50 in March. This impacts both bulk and domestic gas, including our litre gas. While the price increase could have been greater, it was kept lower. We have had past issues with not having enough storage for oil and gas. Now, under the new contract, our supplies are coming from Geogas instead of the earlier supplier from Oman. Most of our gas now comes from the U.S., which ensures we have no supply issues. However, due to our limited domestic storage, we have to store gas in the Maldives temporarily, which adds to costs. We are already working on building permanent storage facilities to ensure a steady gas supply in the future.”