The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Co-operative Development

¶ 01 Hon. Deputy Speaker, I rise because both the Leader of the Opposition and Hon. Chamara Sampath raised concerns about a gas shortage. If their intention is to understand the true situation, I should set out the facts for Parliament and the public.

¶ 02 On the tender process, we conducted an open, transparent call and selected the best supplier—namely, the lowest-priced compliant bidder. In January our requirement was 23,000 metric tons; we requested that amount, and 24,000 metric tons were delivered. For February, we requested 28,000 metric tons; to date, 18,078 metric tons have been received, and three vessels are scheduled for the 22nd, 26th, and 28th. The supplier is delivering as per our request.

¶ 03 Litro serves roughly 80 percent of the domestic market. To address the Laugfs supply issue and protect consumers, the CAA summoned Laugfs twice. They sought time to clarify and informed us their vessel with a little over 3,000 metric tons will arrive on 25 February, and their next vessel is expected on 3 March. They also indicated they are trying to procure from Litro’s supplier. The point is: do not panic. Litro supplies about 85 percent of consumers and continues to do so. The private company, which supplies slightly less than 20 percent, is also trying to source and resume distribution. Large mother vessels discharge offshore and product is brought in via smaller vessels; the same supplier also serves the Maldives.

¶ 04 We acknowledge a temporary market tightness when the private supplier’s distribution halted; consumers then turned to the state supplier, causing panic buying. Litro usually releases 1,100–1,200 metric tons per day; due to the surge, from today for three days we will release 1,500 metric tons per day—increasing Litro’s daily supply by about 25 percent to cover the gap.

¶ 05 There is a practical issue: a customer with only a yellow (Laugfs) cylinder cannot immediately switch to a blue (Litro) cylinder without exchanging equipment, deposits, etc. Some consumers have paid Rs. 10,000–20,000 deposits for cylinders and cannot afford a second set. We have instructed the CAA to ensure Laugfs immediately supplies its customers and, if they fail, to take legal action under the Act. Meanwhile, additional Litro volumes and arriving vessels will stabilize supply. Some media are amplifying panic with visuals of queues; there is no overall shortage—vessels are arriving as scheduled. If the private company does not cooperate, the Government will intervene to ensure fairness to consumers. We have informed them to bring in adequate quantities and distribute without delay. Thank you.