Despite economic adversity and a challenging environment, Sri Lanka’s national LPG provider Litro Gas ended 2020 with exceptional financial results that affirmed its position as the industry leader and a formidable entity in the Sri Lankan corporate environment.
Although the global energy industry was impacted by the pandemic during the period under review, Litro Gas was able to achieve these results while passing on an unwavering economic benefit to the people through stabilized LPG prices, says Mr. Anil Koswatte Chairman & CEO of Litro Gas Lanka Limited and Litro Gas Terminal Lanka (Private) Limited. Litro Gas has reported a Profit before Tax of Rs 1,436 million for the year ended 2020.
For Litro Gas, a volume increase of 3% has impacted revenue on a positive note. However, a domestic segment price reduction of 11% (In 2019 the Annual Average stood at Rs. 1673 /- & in 2020 the Annual Average stood at Rs. 1493/-) has caused a negative impact on the Company’s revenue.
Operating within an industry that is price-controlled in keeping with easing the economic burden on the people as per His Excellency the President Gotabaya Rajapaksa’s economic policy framework, ‘Vistas of Prosperity and Splendour’ (People-Centric Economic Development), Litro Gas has been consistently maintaining the cap on prices of domestic LPG. The result has been an unbroken economic benefit given to the consumers, adds Koswatte.
“Given the usage of domestic LPG as the primary cooking fuel in Sri Lanka, it was imperative for the Company to maintain stable prices throughout the period under review, passing on a considerable economic benefit of Rs 4.5 billion to our consumers.”
This was more evident than ever before, given the lockdown conditions of the first COVID-19 outbreak.
As the world attempts to recover economically from the pandemic, Litro Gas firmly believes that innovation and introducing new solutions are the way forward to consolidate its position as the market leader in the Sri Lankan LPG industry.
Koswatte adds that new products such as pipe-borne LPG for homes and inter-fuel innovative solutions that offer businesses the opportunity to go for LPG as clean, efficient energy, have been among the services pioneered by the Company.” Currently, around 35% of Sri Lankans use LPG for cooking – there’s potential for growth as more and more homes convert to LPG as clean cooking energy, choosing to opt-out of indoor pollutants such as firewood.”
For Litro Gas, empowering communities towards economic upliftment has been championed as a key strategy during the period under review – already, a unique venture in this regard has been undertaken with The Department of Samurdhi Development that gives economically challenged communities the opportunity to opt for LPG as their choice of cooking energy.
Litro Gas as the national LPG provider plays a key role in the country’s energy sector with a 75% market share and a network of 42 distributors, over 14,000 points-of-sale, 1,500 home delivery hubs, and a seamless supply of LPG throughout Sri Lanka. The Company maintains a strong market presence with its Litro Gas Home Delivery Mobile App and a dedicated 1311 customer care hotline.
“Globalization has enhanced the need for clean, green energy across all markets – Sri Lanka is no different. We believe that there’s tremendous potential for growth for LPG in the country,” says Koswatte in conclusion.