Litro, LAUGFS raise LPG prices as global costs surge; firms assure supply stability

Monday, 6 April 2026 05:16 - - {{hitsCtrl.values.hits}}

The two main domestic gas suppliers, Litro Gas Lanka Ltd., and LAUGFS Gas PLC, have raised liquefied petroleum gas (LPG) prices with effect from yesterday (5) midnight, citing sharp increases in global energy costs and mounting logistical pressures linked to geopolitical tensions.

Litro announced that the price of a 12.5 kg cylinder in the Colombo District has been increased by Rs. 775 to Rs. 4,765. The 5 kg cylinder price has risen by Rs. 308 to Rs. 1,910, while the 2.3 kg cylinder has been increased by Rs. 140 to Rs. 890.

LAUGFS, meanwhile, implemented a steeper revision, raising the price of a 12.5 kg cylinder by Rs. 1,070 to Rs. 5,700 and a 5 kg cylinder by Rs. 418 to Rs. 2,280.

Both companies attributed the adjustments to escalating international LPG prices, driven by rising Saudi Aramco Contract Prices, the benchmark for regional procurement, alongside higher supplier premiums amid tightening global supply. Increasing Brent crude oil prices have further reinforced upward pressure across the broader energy complex.

Global demand dynamics have also shifted, with stronger LPG imports across Asia reducing cargo availability for smaller markets such as Sri Lanka. At the same time, freight and insurance costs have surged due to disruptions in key maritime routes, including the Strait of Hormuz, as geopolitical tensions intensify.

Litro said it had implemented only the minimum possible increase in view of the upcoming Sinhala and Tamil New Year and prevailing cost-of-living pressures, absorbing part of the cost escalation rather than passing the full burden on to consumers.

The company also sought to reassure the market on supply continuity, noting that 38,000 tons of LPG ordered for April is currently held in floating storage in the Maldives. Additional shipments are en route, including the vessel Luigi Galvani carrying 20,000 metric tons via South Africa and Freycinet transporting a further 20,000 metric tons from South America.

These stocks, Litro said, would ensure uninterrupted supply through April and into May.

LAUGFS similarly stated that it had taken internal measures to manage costs before revising prices and would continue to monitor global market developments, passing on any favourable changes where possible.