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Traders defend refusal to lower prices after fuel price drop
Although goods and services providers were quick to raise prices when fuel and gas costs rose they refuse to lower prices now that those commodities have become cheaper, advancing a raft of reasons to support their stand.
Private buses and metered three-wheelers, which saw an immediate increase with fuel price hikes, have decided not to reduce fares.
“The fuel price reduction was a welfare initiative, not a subsidy for three-wheeler drivers. Unless such a subsidy is given we will not reduce fares,” said All-Island Three-Wheeler Drivers Association spokesman Lalith Dahanayake.
Mr. Dahanayake said his members maintained minimum fares of Rs. 35 per kilometre while other three-wheeler associations charged as high as Rs. 40.
Private Bus Owners Association President Gamini Wijeratne said although fuel prices had gone down other expenses were still high.
As well, fare formula revisions that should have happened each June had not occurred on time for two years.
“They didn’t let us revise the bus fares in June last year due to elections – the fare was increased only in November,” Mr. Wijeratne complained.
“Even then, the formula was increased at a lower percentage than rising costs in the transport industry reflected.” No fare rise has beenauthorised for this year, and Mr. Wijeratne said members of his organisation were to meet today to discuss a course of protest action.
“We are concerned how this would impact the O/L students who use our transport services and that is why we have held back from any action,” he claimed. Food sold by restaurants and bakeries will also stay at current prices as shop and bakery owners say the reduction in gas prices and electricity bills was not enough to bring the prices down.
The All-Island Bakery Owners Association said only a fifth of bakery owners used gas and electricity and so the price reductions in these commodities had not led to a significant decrease in overheads.
If lower food prices were expected the government should have reduced the heavy taxes that it slapped on food ingredients, association President M. K. Jayawardena said.
“One of the main ingredients in baking, margarine, is taxed at 100 per cent and palm oil is taxed equally heavily. The price of wheat flour has risen in the recent past. If they want to reduce prices the government should reduce the taxes,” Mr. Jayawardena said.
| Price cuts swallowed by other costs Labouring over a hot stove to make the evening’s batch of pol roti, eatery owner Sunitha* says the cost of ingredients is high and rising in some cases and she cannot afford to cut prices in relation to the drop in fuel prices. “The price of coconut and vegetables have not gone down. I had to pay Rs. 50 for just 100g of green chilies. They might have reduced the price of gas, which is only one commodity, but we still have to pay workers and rent,” said Sunitha, 54.  M. D. Iqbal Sunitha splits the income of the small café with her brother-in-law. Her daughter, three grandchildren and a sister all depend on her share of the income. According to Sunitha, rice prices are still very high and the reduced prices quoted by the Ministry of Internal Trade are unheard of. She pays Rs. 100 for a 1kg bag of samba. “Where do you find rice at Rs. 70?” she asks. “We buy from shops around here, and it is expensive here.” Sunitha’s story is echoed by the owner of the Iqbal restaurant, Mr. M. D. Iqbal. Unable to manage rising costs, he too has retrenched some of his staff and got his brother and nephew to help out. “I have to think of the 10 families who survive by preparing food for the restaurant too. I will have to think of something,” he said. |