Litro Gas Lanka Limited has successfully tackled the LPG crisis restoring supplies while reducing prices after streamlining the management and expediting the shipments to meet the demand for the next three months and beyond, company sources revealed.
It has awarded a short-term LPG contract for 100,000MTs and received the quantity of 33,000 MTs of consistently since July this year effectively easing the shortage in the market through a proper distribution system of LP gas cylinders, a top official of the company said.
The Litro gas has floated a term contract of 280000 MTs for one year (2022-2023) and the tender evaluation process now underway with the securing of bank credit lines to service the contract, he added.
The present Supplier OQ Trading of UAE and Siam Gas of Singapore the eliminated bidder of the previous controversial LP Gas Tender for 280,000 MTs cancelled by Litro Gas Lanka on July 24 2022 are in the contest once again to gain the contract from the fresh tender.
This was revealed at the bid opening of the new tender called to procure 280,000 MTs of LP Gas on Monday 15.
Only two prospective bidders at the bid opening were the OQ Trading and Siam Gas who submitted bids for the tender re-called by Litro Gas Lanka Limited in accordance with the directive of the Parliamentary Committee on Public Enterprises (COPE) to procure LPG for the period of 2022- 2023.
The COPE has recommended that an investigation be conducted by the Auditor General’s Department on the cancellation of the Term tender, which had been approved by the Cabinet to purchase LP gas from Siam Gas at US$ 96 per MT and opting to buy 100,000 MT of gas at a cost of $ 129 per MT from OQ Trading.
According to official documents, OQ Trading was awarded an order to supply 100,000 Metric Tons of LP Gas of which almost 33,000 MTs have already been supplied. The supply of the balance quantity of 67,000 MTs is scheduled to be completed by October 2022.
It is believed that Litro Gas Lanka would conclude the evaluation process soon and report to the COPE of the new successful bidder, who is expected to start delivery from November 2022.
