In the face of the current foreign exchange crisis, it is difficult for Litro to sustain the gas industry operations, said Piyal Colombahetti of the Litro Protection Association.
He said that Litro loses Rs. 2,000 on a 12.5 kg cylinder currently.
“The net loss from a 12.5 kg domestic gas cylinder is Rs. 2,000. The situation today is that for every dollar that increases, the cost of a gas cylinder increases by Rs. 12.50. If we purchase another shipment of gas on the March contract basis, that would spell the end of Litro. If we run at these current pricings, we won’t be able to run for another three months. We need to increase prices. The dollar is within the Rs. 300 range… the cost per gas cylinder is around Rs. 4,462.”