Protests mount against increased prices

Fishermen and three-wheeler drivers around the island continued their protests this week demanding the Government reduce fuel prices or provide satisfactory concessions on fuel. Last week, the special cost of living ministerial committee decided that the fishermen should receive 20 litres of fuel a day at Rs.8 less than the current market price. However, this was to be implemented for a period of only 25 days, which has angered the fishermen.

Almost 3,000 fishermen joined island-wide protests on Friday demanding the Government provide bigger subsidies for a longer period of time. Furthermore, protests in Colombo on August 23 are expected to show a larger turn up. National fisheries solidarity movement president. Herman Kumara said the Government had not given a satisfactory answer to the demands for kerosene concessions as the current subsidy of Rs.8 does not compensate for the Rs.18 kerosene price hike during the year.

“The current subsidy has only been implemented for the month of August, which means that the price of kerosene for a fisherman will revert to the usual selling price next month. The Government needs to formulate a long term plan to benefit these unfortunate fishermen,” he said. Mr. Kumara said even though the special cost of living sub committee was to discuss the matter at its meeting last Monday, no acceptable solution had been proposed.

A spokesman for the all island fishermen’s trade union, which met the President last week to discuss the matter, said the union was content with the current implementation of the kerosene subsidy but was concerned about the period of implementation.“We are currently discussing the matter with the Fisheries Ministry and we hope to formulate a suitable subsidy for a period of at least one year,” he said.

Meanwhile, the Government announced last week that the price of diesel will remain at Rs.75 a litre for the rest of the year despite any world market price changes. However, Ceylon Petroleum Corporation (CPC) Chairman Ashantha De Mel said the Government had not prepared an alternative plan to avoid losses in case of a world market price increase of diesel.

“In the case of a world market price increase the Government will have to provide the CPC with a subsidy to prevent any losses to the Corporation,” he said. Petroleum and Petroleum Resources Minister A.H.M. Fowzie defended the fuel hikes stating that the Government has taken all necessary measures to reduce the adverse impact of fuel prices despite the steadily increasing world market prices.

“World market prices of petrol has increased by 64% since January while the price of diesel has increased by 40% but the Government has only increased local prices by 20%,” he said. He said the present Government spends billions of rupees on various subsidies including providing concessions for the Samurdhi beneficiaries and could not provide more subsidies at the moment.

He said the Government makes a profit of only 1.5% on fuel while the UNP Government made profits of up to 5%.“We have gained profits of about Rs.500 to 600 million from our refinery which goes directly into providing subsidies for fuel,” he said. The minister also said the Government will not increase petrol prices to cut down losses on diesel in case of a world market hike but would find another solution which will have to be discussed by the sub-committee.