LPG Prices Surge as Global Energy Costs Rise 📈

Sri Lanka's primary gas suppliers, Litro and LAUGFS, announced significant price hikes effective April 5 midnight, driven by rising Saudi Aramco benchmark rates and geopolitical disruptions affecting maritime routes. • Domestic Gas Price Revisions (12.5 kg): - Litro Gas: Increased by Rs. 775 to Rs. 4,765. - LAUGFS Gas: Increased by Rs. 1,070 to Rs. 5,700. • Other Cylinder Categories: - Litro: 5 kg up by Rs. 308 (Rs. 1,910); 2.3 kg up by Rs. 140 (Rs. 890). - LAUGFS: 5 kg up by Rs. 418 (Rs. 2,280). • Economic Drivers: The price adjustments reflect escalating global energy costs and increased supplier premiums. Higher freight and insurance costs—linked to tensions in the Strait of Hormuz—and limited cargo availability in Asia due to high demand have pressured local procurement. • Supply Outlook & Festive Season: Despite the hike, Litro claims to have absorbed a portion of the cost to cushion the impact ahead of the Sinhala and Tamil New Year. Supply stability is guaranteed for April and May, with approx. 78,000 metric tons of LPG currently in floating storage or en route to the island. • Market Impact: The widening price gap between the two players remains notable, with LAUGFS implementing a steeper revision compared to Litro. Both firms continue to monitor global Brent crude trends for future adjustments.