After milk food price hike, electricity rates to go up

Litro Gas calling for a Rs. 2000 increase in the price of 12.5kg cylinder

A string of price increases, including electricity and gas price hikes, is to follow hard on the heels of the milk food price increase put into effect last night.

Powdered milk importers yesterday decided to increase the prices once again on the grounds of a price hike in the global market and the appreciation of the US dollar against the Sri Lankan rupee.

Accordingly, the price of a 400g packet of powdered milk has gone up by Rs. 250 and the new price is Rs. 790. It was Rs 540.

The Milk Powder Importers’ Association has also proposed to raise the price of 1kg packet of powdered milk by Rs.600 and the importers have informed the Consumer Affairs Authority (CAA) of their decision.

If approval is granted, the new prices will range between Rs. 1,345 and Rs. 1,945.

The Power Ministry on Monday is due to submit a cabinet paper proposing a revision in the electricity rates.

A ministry sources said that a concession would be offered to those consuming less than 90 units of electricity, but those using more than 90 units would be charged at the new rate.

Meanwhile, Litro Gas Lanka Limited officials said this week that to overcome losses, there should be at least a Rs. 2,000 price hike for a 12.5kg domestic gas cylinder for the next three months.

The present price of a 12.5kg Litro domestic gas cylinder is Rs. 2,675 and if the new price increase happen the price will go up to Rs. 4,675.

A massive shortage of milk powder and domestic gas cylinders are already visible in the market.

The importers also said they are still unable to meet the local demand for powdered milk and gas due to obstacles they faced in opening letters of credit.