Although gas prices are largely dependent on global market conditions, there could be price cuts if efficiency improved, said Minister of Mass Media and Information, Keheliya Rambukwella. “There is a 20-25% profit margin on overheads,” Rambukwella said. He added that if it was possible to cut down on overheads, the higher profit could be passed on through lower gas prices.
The Media Minister announced that the Cabinet had approved a proposal to purchase 51% shares in Shell Gas today. Rambukwella added the Government hoped to improve efficiency within the private owned institution.
“In 2005, we decided not to privatise Government institutions. Now, we are going a step further,” Rambukwella said of the move.
Rambukwella said many people had received a “raw deal” by the privately owned organization.