The local LP Gas industry will have around 35 percent growth this year with the rural market penetration.
Domestic LP Gas penetration in Sri Lanka is less than 30 percent and there is a delay in adopting to LP gas instead of firewood due to the high switching cost in moving from firewood to LP gas.
“Last year the Gas industry has increased to 20 percent whereas Laugfs Gas has had a 30 percent share in 2010. The total industry can expect around 35 percent increment and Laugfs Gas will have the same increase as the industry in 2011,” Laugfs Gas Limited Chief Financial Officer Wasantha Ranasinghe told Daily News Business.
Laugfs Gas Limited has accounted for 30 percent of the domestic LP Gas market last year while having a 60 percent share for industrial utilization of LP Gas. Laugfs’ contribution to Auto Gas is 90 percent of the market.
He said the LP Gas industry is growing and can expand where even a new comer too can have a market share at the beginning.
“LP Gas is mainly used for ceramic, glass, steel cutting and the confectionary industry. The consumption of the confectionary products is continuously increasing making more space for LP Gas year on year,” he said.
Laugfs Gas Limited has initiated a program to introduce a low cost gas cylinder and a gas cooker for inhabitants in Jaffna and North East areas.
“This will promote more LP gas cooker usage in rural areas,” Ranasinghe said.
He said renewable energy sources such as wind power can take a market share of energy in the country with Government subsidies.
source - www.dailynews.lk
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