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| Sunday, 28 April 2002 |
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Impact of fuel price hike takes its toll by ANTON NONIS Following the increase in prices of fuel products, especially diesel and petrol, transportation costs of all goods are likely to go up, and already its impact has been felt on several food and consumer items. Besides, the private bus operators too are planning a fare hike and this would further aggravate the problems of the common man. According to Ceylon Petroleum Corporation (CPC) chairman Daham Wimalasena, the latest price increase of fuel was mainly due to a rise in petroleum products in the world market and the exchange rate of the dollar going up. The Organisation of Petroleum Exporting Countries (OPEC) made a bold bid to reduce crude oil production, which if successful, might have led to a further increase in world market prices, CPC sources said. However, Sri Lanka was lucky to have escaped with a nominal increase compared to other countries, an official of the CPC's Commercial Department said. The source allayed fears among different quarters that fuel prices might further increase in the near future. He assured that the present price structure would remain static for some time. The price increase by Rs. two on a litre of diesel is equivalent to Rs. nine per gallon which is considerably high. The bulk of transportation is by vehicles operated on diesel. The increase in transport costs are eventually passed on to the consumer. As a result, items directly affected are mainly vegetables that are transported to the city from distant places. In towns and the weekly bazaars in the city and the suburbs, consumers frown over the escalating prices of goods available for sale. The vendors are blamed for exploiting on the current situation which could only be arrested by the authorities in nabbing the errant traders. Meanwhile, the private bus operators have threatened to raise fares to counter the diesel price hike. The Private Bus Owners' Association president Gemunu Wijeratne, said that so far no decision has been made in this regard. Mr. Wijeratne said that he was totally against any increase in bus fares at this juncture when the Government was involved in a crucial issue of a peace process with the LTTE. The Transport Minister Upali Piyasoma was adamant in not raising bus fares for at least another year. The present fuel price structure has been implemented by the officials of the CPC in consultation with those at the Treasury. |
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