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Gas companies also seek price hike, CoL likely to soar
While the cost of living is likely to soar in the wake of yesterday’s fuel price hikes, a government-appointed ministerial committee is due to study a proposal to increase gas prices.
Trade Minister Bandula Gunawardena told the Sunday Times that the committee would meet tomorrow to discuss a request made by the two companies – Litro Gas and Laugfs — seeking permission to increase gas prices.
He said the companies had requested that the price of a cylinder of domestic gas be increased by Rs 700, but the Government was not agreeable to a high increase.
The minister said gas company representatives too had been invited for the talks and the committee would call for alternative proposals.
The Sunday Times learns the Government was considering an increase of about Rs 300 a cylinder.
In addition to Mr Gunawardena, the other ministers in the committee are Vasudeva Nanayakkara. Mahinda Amaraweera, Udaya Gammanpila and Keheliya Rambukwella.
The moves come as the Government increased petrol, diesel and kerosene prices from yesterday. According to the new price scheme, petrol 92 was increased by Rs 20 with the new revised price now at Rs 157 a litre. The petrol 95 price was increased from Rs 161 to Rs 184.
Auto diesel was increased by Rs 7 a litre thereby the new price has gone up to Rs 111 while the super diesel price has gone up by Rs 12 a litre and will now cost Rs. 144.
The kerosene price has been increased by Rs 7 a litre and will now cost 77.
The fuel price increase has sparked off a chain reactions with transport sectors claiming that they would be compelled to increase fares.
The Bakery Owners Association yesterday sought permission to increase prices of bakery products, because of the increase in transport charges and the price hike of palm oil.
Private Bus Owners Association President Gemunu Wijeratne said they would be severely affected by the diesel price increases and would be forced to cut down their services, pending a revision of the fares.
Three-wheel associations are due to meet next week soon after travel restrictions are lifted to discuss a revision of fares.
A spokesman said an increase of Rs 20 for a litre of petrol litre was too high and he also pointed out that in September 2019, the previous government had reduced the price of petrol by Rs. 5 a litre before the Presidential election.