LAUGFS defends Rs. 1,775 cooking gas price increase citing rupee and costs

LAUGFS Gas PLC and LAUGFS Engineering Chief Executive Officer Nalinda Kurukulasooriya has defended a Rs. 1,775 increase in the price of a 12.5kg domestic gas cylinder. He attributed the rise to rupee depreciation, taxes, financing costs and higher international procurement costs.

According to a cost breakdown provided by the company, the rupee's depreciation added Rs. 299, VAT accounted for Rs. 256 and financing costs linked to bank borrowings and Letters of Credit contributed Rs. 90. These components total about Rs. 1,768 of the overall increase.

Kurukulasooriya also cited international market conditions and the closure of the company's Hambantota operation. He acknowledged the revised price is high for consumers but said the adjustment was necessary to cover rising costs.