News
Fuel price increase begins to weigh on cost of living
View(s):By Kasun Warakapitiya
Amid assurances of continuing fuel supplies and adequate stocks, public concern has grown over the price increase and the cost of living.
Ceylon Petroleum Corporation (CPC) Chairman Janaka Rajakaruna and the government have assured there are no fuel shortages and stocks are adequate for 40 days.
Two price revisions came in quick succession.
Pushparaj Rajaratnam, 33, who runs an eatery near Fort Railway Station, has felt the impact of the fuel price increase when vegetable prices jumped
The government defended the move, saying it was meant to prevent a large margin of increase the next time and the increase was due to higher prices in global oil markets. (See graphic).
The price revision drew mixed reactions from the people, with some raising doubts about fuel availability and expressing concern about future shortages and further increases.
Some had already felt how it affected the cost of living.
Don Leelaratne, a three-wheeler driver said that he lined up for fuel and was forced to get a litre in the underground market. Pix by Nilan Maligaspe
Pushaparaj Rajaratnam, 33, who runs an eatery near Fort Railway Station, has felt the impact of the fuel price increase when vegetable prices jumped.
“I am a father of three; my family lives in Hatton. I have to pay for the rent of my boarding house and this eatery and pay the salaries of eight employees. Making a living has become a tightrope walk.’’
A resident of Wellampitiya, Sharmila Iranthi Hewapathirana, said the price increase is felt in the home kitchen.
She works as an ice cream machine operator at a milk bar. She had noticed a drop in customers, although the shop owner had not yet increased the price of ice cream as well as snacks.
“I am worried that fuel prices would further increase. If that happens, I don’t know how we would survive.’’
Some said that availability of fuel is more important than the price and welcomed the recent price increase. It is better than lining up and buying fuel from the underground at extremely high prices.
Don Leelaratne, 62, a three-wheeler driver, told the Sunday Times that he lined up for fuel and was forced to get a litre in the underground market. He believes the government is collecting more revenue to purchase fuel at higher prices later.
Others said that they lost faith in the government because of conflicting statements and deception.
Tourist guide K.A. Jayakody said that the war is a risk to livelihoods
Tourist guide K.A. Jayakody, 50, a Kegalle resident who accompanies Polish tourists, said that the war is a risk to livelihoods.
“Last week the CPC said there were enough fuel stocks for 40 days, and the next week they increased prices. These are old stocks; now we are paying more for fuel that the government purchased for a lower price. Fuel station owners are ripping off people,’’ he said.
Container transporters are concerned over the increase and were compelled to impose an additional cost of 2.5% on the ongoing hire rate based on the formula previously introduced by them.
The secretary general of the Association of Container Transporters (ACT), Nimal Ameresekare, said the additional cost was increased based on the fuel price.
However, the government is compelled to increase electricity tariffs in the coming days, while the LP gas price has already increased and the cost of living is affected, causing the base rates to be considered for an increase to compensate for the cost of living.
“At present the Colombo Port terminals are jammed due to the war as ships are delayed. Customs inspection bays are blocked, and the output has been pretty slow due to lack of space and shortage of staff,” he said.
Mr Amarasekara said the congestion at port terminals is due to additional costs charged by transporters.
The private bus operators have not revised fares so far. They need regulatory approval.
The Private Bus Owners Association’s Gamunu Wijeratne said that this was the second time that the fuel price increased this year, but bus fares were not increased. Bus owners expect further price revisions.
He asked the government to ensure fuel availability and create a mechanism to stop fuel queues. Mr Wijeratne said a QR code and a mechanism are needed to curtail stockpiling.
School van operators recalled the difficulties during the economic crisis and were unable to meet lease payments and carry out maintenance when learning switched to online.
The All-Island Inter-District Schoolchildren’s Transport Association president, N.M.K. Harishchandra Padmasiri, said fares should be increased by at least Rs 500 per student within a 45-kilometre radius to a school. He expects further fuel price increases and called on the government to provide a concession and a grace period on lease payments if the schools close down to limit fuel use.
One of the three-wheel driver associations said it understood the gravity of the crisis.
All Island Three-wheel Drivers’ Union president Lalith Dharmasekara told the Sunday Times that they are more concerned over the availability and distribution of fuel. The union is not concerned over immediate price increases, but there should be a mechanism to ensure smooth distribution of fuel without queues.
A CPC source said that pre-ordered shipments at lower cost had reached Sri Lanka, and there is no shortage.
With the announcement of the price increase, fuel stations had sold the stocks at the revised, higher prices, the source said.
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