Domestic gas prices have been increased in response to rising global LPG prices, Minister Vijitha Herath said during the weekly Cabinet media briefing today (07).
The Minister explained that the revision was influenced by the increase in the Saudi Aramco price index, which rose from $541.5 to $787.50 per metric ton in March.
Despite the price hike, he assured that there is no disruption in gas supply. Under a new tender process, Sri Lanka now sources gas primarily from the United States (80%) and South Africa (20%), instead of the Middle East.
Minister Herath noted that limited local storage capacity has also contributed to increased costs. At present, gas is being stored in facilities in the Maldives before being transported to Sri Lanka, adding to logistical expenses.
He further stated that frequent shipments—approximately every three days—have also increased operational costs.
The Minister emphasized that while global price increases warranted a larger adjustment, the government has limited the increase to reduce the burden on consumers.
He added that plans are already underway to develop permanent storage facilities in Sri Lanka to ensure a more stable and cost-effective gas supply in the future.
