News
Chain reaction of CoL increases coming from fuel price hike
This week’s fuel prices increase is set to trigger a chain reaction with transport costs, food prices and the cost of living to rise.
Long queues at fuel stations: This was the scene in and around Colombo city no sooner the hike in fuel prices was announced. Pic by M.A. Pushpa Kumara
The increase came hard on the heels of a hike in the prices of gas, milk and food items.
The head of the state-run Railway Department has called for an increase in train fares too.
Railways General Manager S.M. Abeywickrema said the Government spent more than Rs. 3,000 million on diesel to power electric locomotive engines and power sets.
“Bus fares are always increased when the diesel price increases but the railway has not made such an increase in the course of the three-year term of the current government,” he said.
“It would be constructive if the government takes a decision to increase railway ticket fares,” Mr. Abeywickrema said.
Three-wheelers have already increased prices, while bus operators claim they will increase charges by at least 10-15 per cent and school and office van transport costs are also set to rise.
Private Bus Owners Association President Gemunu Wijeratne said association members have to increase bus prices by at least 10 percent, and explained that in the calculation of the proposed increase the authorities should also take into consideration the annual bus fare increase in July, thus avoiding a second increase in two months again.
Mr. Wijeratne said that due to traffic congestion bus operators are unable to complete all the bus runs and therefore suffer losses.
“We burn so much fuel on the road,” he said. “When we are stuck in traffic, sometimes drivers and conductors miss their turnaround runs. When the increase of fuel prices adds to the burden they will be unable to make an income.”
He added that because the rupee had depreciated against the US dollar the cost of spare parts and tyres had gone up too and therefor fares must increase.
The association would wait until Wednesday for a government response before acting, he said.
Private Bus Owners Association President Gemunu Wijeratne addressing the media. Pic by Sameera Weerasekera
Fare increases of 15 percent have been flagged by some other bus organisations.
A driver parked at the bus parking station in Panchikawatte, Lokugamhewage Hemantha Kumara, described how fuel costs ate into profits.
“We operate a bus run from Tangalle to Colombo and purchase diesel for Rs. 14,500 per day. We collect Rs. 20,000 in fares. Now, due to the increase, we have to spend around Rs. 15,000 on fuel,” he said.
The bus owner only paid him Rs. 2,000 – 10 percent of the fare revenue.
Three-wheeler Drivers’ Association President Lalith Dharmasekara said trishaws had already increased minimum fares by Rs. 10 even though the government had increased fuel prices by Rs. 20 a litre. Drivers had only increased the fare for the first kilometre to Rs. 60 but kept the fare for the second kilometre to Rs. 35-40.
A pensioner, Mirissa Lankage Dayapala from Kadawatha, accused three-wheeler drivers of using fuel prices as an excuse for charging exorbitant fares, and added: “The Government also keeps increasing taxes which has an impact on persons like us”.
The President of the All-Island Inter District School Children Transport Association, N.M.K Harischandra Padmasiri, said the 172 school van associations operating within 19 districts are discussing increases in school van fees.
“We have refrained several times from increasing charges,” Mr. Padmasiri said. “We have other costs, such as spare parts, government taxes and parking fees. In addition, we get ready for work earlier in the day and therefore spend extra on electricity bills, so an increase in fares is inevitable.”
Fishermen will be hit as many use diesel for boats and trawlers. The government concession is only for kerosene oil.
A multi-day trawler will now need an additional Rs. 3,500 to fuel a journey, said Ratna Gamage, National Organiser of the All Island General Fisheries Association.
The 50,000-odd small craft that operate daily would incur additional expenditure of Rs. 1,500-2,000.
W.P. Dayananda: Bank security guard
Mirissa Lankage Dayapala: Pensioner
Mr. Gamage said fishermen should be given concessions to provide fish to consumers at a reasonable price.
Hemantha Kumara: Private bus driver
The people are bracing for a hike in the cost-of-living, triggered by the petrol price rise.
W.P. Dayananda, a bank security guard, said it was already hard to meet daily expenses.
“I have to maintain my family and my parents, who are ailing, and the money I earn is not sufficient,” he said.
“We had to vacate our house in Badulla due to landslide threats and have not obtained any compensation. If prices increase it will be more difficult for us. My children are studying and I need to support them,” Mr. Dayananda said.
