News - Cost of living to escalate with fuel price increase

Last week’s fuel price increase is expected to trigger a chain reaction leading to a further increase in the cost of living with fears that prices would rise in the coming few weeks, consumers and traders said.

A cross section of traders in the Pettah market and consumers told The Sunday Times that they expect the prices of vegetables and other commodities would rise as transport charges are bound to increase.

President of the Old Moor Street Trade Association K. Palaniandy Sundaram said prices of foodstuffs such as sugar, flour and dhal would increase once the present stocks are over.

Consumers have also expressed concern that prices would rise.

“A public sector employee has no other way to earn an additional income but has to depend on his or her salary. The rising cost of living has to be met with a fixed salary. I come here hoping to buy vegetables and other food items at a

low price. The fuel price increase is already a great burden on the ordinary people,” Rohini Vidanapathirana, a public sector employee shopping at the Manning Market in Pettah said.

The price of beans which was Rs.83.57 a kilo last month has increased to Rs.90 a kilo. The prices of cabbage has rapidly increased from Rs.42.38 a kilo to Rs.80 a kilo this month and carrots from Rs.83.57 a kilo to Rs.90 a kilo. The prices of snake gourd, ash plantains and brinjals are very high, with the price of brinjals Rs.100 a kilo. Red onions cost Rs.90 a kilo, while Bombay onions are Rs.40 a kilo. Potatoes are priced at Rs.75 a kilo and dried chillies are Rs.180 a kilo.

Raja (50) who has been working as a vegetable dealer in the Manning Market for more than 20 years said “Prices of many vegetables have gone up because there is a scarcity.”

With the increasing price of consumer goods the public worries whether the Government plans to bring down the cost of living.

The Trade Ministry said steps were being taken to reduce the increasing cost of living.

“We try our best to keep the price of rice as low as possible to encourage its consumption,” said Trade, Commerce and Consumer Affairs Ministry Secretary Dr.R.M.K.Ratnayake.

He said his Ministry had allocated Rs.64.2 billion last year for subsidies of which Rs.26 billion was allocated for subsiding fuel costs.

Referring to manipulation of prices by traders he said “Sri Lanka is only producing 30% of the sugar demand with the balance being imported. The price of sugar depends on the world market or the London preference market price. But the pathetic situation is that there are a large number of bondsmen

in the trade. They buy such commodities when the world market price is very low and store them in bonded warehouses to be sold when prices rise. The Ministry is doing its best to eliminate such practices in the trade of such food items.”

Explaining some of the actions taken by the Ministry Dr. Ratnayake said Samurdhi recipients are given the option to buy rice for Rs.26 a kilo.

He said his Ministry is also hoping to increase the number of Lak Sathosa outlets to 50 from the present 22 which provide consumer goods with little overhead costs.