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Govt. to counter high oil prices
By Feizal Samath
Expressing concern over world oil prices that hit a record high last week, the government announced plans on Thursday to cushion poorer segments of the population and private sector manufacturers against a fuel hike here but no details were released.

"In the light of rising oil prices, the government is considering some innovative approaches as we are keen not to heap more burdens on the poorer segment of the population," Finance Minister Dr Sarath Amunugama said in an interview, adding, "details of which I cannot disclose.”

“Raising prices would be our last resort, if other options don't work," he said. Oil prices hit a record $40 per barrel last week exacerbated by a terrorist attack in Saudi Arabia. In a wide-ranging interview (see FT section), Mr. Amunugama said he was also particularly concerned not to pass "burden after burden" on the country's manufacturing and export sector.

"We all know that they are engaged in severe competition with international companies. If we raise tariffs indiscriminately, then their production costs go up and they would be placed at a disadvantage just at the time when they need all the help they can get" he said.

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