CAA to regulate gas prices

Minister of Trade, Commerce and Food Security Nalin Fernando said that it has been decided to appoint a committee to determine the price of gas to be imported to Sri Lanka from now on.

The Minister noted that the Consumer Affairs Authority (CAA) is intervening to regulate gas prices. Minister Fernando emphasized that this applies to both Litro and Laugfs companies.

He was speaking during a media briefing held at the Government Information Department yesterday.

The Minister claimed in the past, gas was not classified as an essential commodity and prices were not regulated.

He said however that the Cabinet of Ministers approved the appointment of a Committee to determine gas prices and regulation by the CAA.

However, when questioned by journalists whether the price of gas will be controlled under a maximum price, the Minister claimed the CAA will regulate gas prices.

Meanwhile, posing a question a journalist said that the price of bicycles had increased exponentially in the market and asked the minister if there was a possibility of regulating bicycle prices. However, in response the minister noted that unlike rice or dhal, price of bicycles cannot be generalized due to the various models of bicycles.

However, the Minister said that in the future, a relaxed policy will have to be followed regarding the ban on the import of spare parts for bicycles and small vehicles.

Comments were also made regarding the Gazette Notification issued stating that a maximum retail price should be fixed for each product.

The Minister said a ban on importing spare parts for bicycles and other small vehicles was imposed a year ago with the aim of strengthening the rupee.

The Minister however claimed that certain traders were increasing prices due to limited stocks while noting decisions pertaining to the relaxation of certain importation policies will have to be made in the future. Minister Fernando also noted that the import of essential goods through open accounts will be allowed from today and it will be subject to the regulation of the Ministry of Trade.The Minister stated that strict action will be taken against traders who do not sell rice at the controlled price.

“We are able to maintain all essential goods in the country. During the next few months all our essential goods will be available and we have implemented a mechanism for it,” he said.

The Minister of Trade said that on May 9, the Central Bank had taken a decision to stop all imports through Open Account Payment Terms or Consignment Account Terms, subject to conditions, in a bid to recreate dollar liquidity in the formal banking channels. However, he said that discussions were held with the Central Bank, the Finance Ministry, the President and the Cabinet and approval recevied to import 10 essential items under the Open Account Payment Terms from yesterday (July 1).

“Through this we could obtain these goods at competitive rates. Therefore, from yesterday (01), we started the import of these essential commodities.”