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Fuel price hike triggers CoL rise
Three-wheeler fares up, foodstuff traders say fresh stocks at increased prices
By Nalaka Nonis
The decision of the Government to increase fuel prices has triggered a rise in the cost of living as prices of a number of consumer items as well as services are set to go up.The fuel hike has already triggered price increases in some food products, private bus fares and three-wheeler fares.

Traders in Pettah said the fuel price hike would soon force them to increase the prices of several goods ranging from vegetables, rice and sugar to dry fish as vehicle owners who transport these items would increase their charges.
The price of sugar and dried chillies has already shown an increase in the Pettah Manning market. The retail price of a kilo of sugar has gone up from Rs. 50 to Rs. 58 while the price of dried chillies has gone up from Rs. 150 to Rs. 160.

The traders warned they would have to increase the prices of several goods from Monday as their stocks are coming to an end and they would have to sell fresh stocks at increased prices.

They said the prices of vegetables and fruits would go up while the fuel price hike would also affect the prices of other food items. After the fuel price revision was effected on April 15, a litre of petrol costs Rs.88, a litre of super petrol Rs. 91; a litre of diesel Rs. 58, a litre of super diesel Rs.63.30 and kerosene which is mainly used by the poorer people has gone up to Rs. 38.50 a litre.

Bakery Owners’ Association president Parakrama Dassanayake said the fuel price hike has affected the bakery industry as well, as most bakeries use fuel for firing their ovens.

However he said no decision has been taken so far to increase prices of bakery products. Some three-wheeler operators have increased their charges. Especially in Colombo some operators who earlier charged Rs.100 for a journey are now charging Rs. 110 to 120. However many of them still charge the previous fares.

Private bus fares are to be increased by 16 percent, effective tomorrow, raising the minimum fare from Rs. 4 to Rs. 5, with state-run bus services following suit.

Private Bus Owners’ Association president. Gemunu Wijeratne said it was decided to drop the previous demand for a 26 percent increase and settle for the 16 percent increase as the Government has promised to solve the problems at provincial council level and establish bus companies on a regional franchise basis.

Transport and Petroleum Minister A.H.M. Fowzie told The Sunday Times the Government would still lose Rs. 2 billion in April even by giving fuel at the increased price.

He said the Government would have to sell a litre of petrol at Rs. 100 if it is to avoid a loss. He said the Government has been losing Rs. 2 billion in January, Rs. 2.5 billion in February and Rs. 3 billion in March as a result of providing fuel at a subsidised price and added there would be a fare hike in the railway in the near future.

Minister Fowzie said from tomorrow school children will be provided free travel to and from school in public transport and only those in school uniforms would be eligible.

He also said the Government was planning to provide kerosene to poor people, fisher folk and farmers at a subsidised price and was trying to identify those who actually need this subsidy. The minister warned the Government would be forced to increase fuel prices again if world oil prices continue to increase.

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