Fuel price hikes by the state-owned Ceylon Petroleum Corporation (CPC) and the Indian-backed Lanka India Oil Corporation (LIOC), whilst Sri Lankans were engrossed in yesterday’s World Cup cricket match, will cause formidable increase in food prices, other goods and services.
The CPC said yesterday that the price of petrol had now been raised by ten rupees a litre or Rs 45 a gallon whilst diesel had gone up by three rupees a litre or Rs 13.50 a gallon. However, the Indian-backed LIOC said yesterday it had also raised the price of petrol by ten rupees a litre but diesel at their outlets would cost the consumer seven rupees more a litre. This means a gallon of diesel sold by LIOC would be Rs 31.50. In addition gas prices have been increased by Rs 238.
LIOC Managing Director Suresh Kumar told the Sunday Times, “we have been compelled to increase the diesel prices more than the CPC due to heavy losses. We have not informed the Government about the new increase. I will be conveying it shortly.”
Opposition parties said the increases would send the cost of living soaring. They said the price increase would lead to rise in costs of a variety of consumer items, goods and services. Opposition parties slammed the Government for taking cover under the World Cup cricket finals in Mumbai to raise fuel and gas prices.
Opposition United National Party (UNP) leader Ranil Wickremesinghe said the majority of the people in the country had in fact given a mandate to the Government to raise these prices. He warned of further increases in electricity, fuel and gas prices by July.
“We are going to carry out countrywide campaigns against this,” he said at a ceremony where UNP members of the Passara Pradeshiya Sabha swore allegiance to the party.
Mr. Wickremesinghe was alluding to the recently concluded local government elections. “We campaigned against the cost of living but only about 25 percent of the people accepted this.” He said the President and other Ministers have gone to Mumbai for the cricket finals after raising the fuel prices and heaping burdens on the consumer.
The increases came despite an assurance to the contrary by Petroleum Resources Minister Susil Premajayantha. He told the Sunday Times last week that any price increase would be only after the National New Year in the coming week.
JVP frontliner Anura Kumara Dissanayake told the Sunday Times that the Government had failed to keep the promises made during the local government elections to provide relief to the people. “They maintain a jumbo Cabinet and cover up all the wastage by imposing taxes and sudden price increases,” he said.
Mr. Dissanayake said this would lead to increases in practically the prices of all consumer items.
“Vegetable and rice prices will go up. So will all others. Transport prices will be increased. They have heaped a big burden on the people whilst their attention was focused on cricket,” he said.
Mr. Dissanayake said his party would also launch a campaign countrywide to expose the Government’s activities. He said last week President Rajapaksa had told Parliament that his Government would be able to provide fuel at a subsidized rate only if it was able to bear the sharp increase in international prices. However, mismanagement and heavy costs which the Government is unable to control have led to this situation.
Last month, the LIOC increased the price of a litre of diesel by five rupees and called upon the CPC to follow suit.
(Please note that the Business Times story related to fuel prices was written before the fuel price increase was announced) |
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