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Fuel tab burns a hole in home budgets, traders reeling from shock
There's less activity in the usually bustling Pettah market due to the drop in demand for goods after the price hikes. Pix by Akila Jayawardana
Yet another steep increase in fuel prices means the troubling effects are cascading to every sector of the economy, especially to households.
The price of petrol jumped by up to 24%, while diesel prices rocketed by up to 38% on Tuesday this week. Fuel prices have more than doubled since October.
State-owned Ceylon Petroleum Corporation revised up the petrol price to a record Rs 420 a litre and diesel to Rs 400, a new high.
Power and Energy Minister Kanchana Wijesekara said in a tweet the “revision includes all costs’’ related to “importing, unloading, distribution to the stations and taxes.’’
Not many customers for this seller
Consumers hold the government of President Gotabaya Rajapaksa and Mahinda Rajapaksa responsible for thier failure to ensure steady supplies of fuel.
April inflation came above 33% but the reality is much harsher for Sri Lankans. Household expenses have become unbearable, and some essentials such as powdered milk are unaffordable and even unavailable.
Daily wage earners who make about Rs 2,500 are suffering.
Labourer Dickman Arachchilage Anil, 58, who undertakes garden maintenance and support masonry work, said he looks for work nearer to his home because he can’t spend on transport.
He said he walks from Polwatta area to Ambalangoda to buy goods for his family of five.
Expenses on food, water, electricity, and house rent have increased.
David Raj: Higher transport costs have pushed the prices up
“I have to pay Rs 8,000 rent for the house that I live in. So I stopped eating from outside and now bring a home cooked meal. I can’t spend nearly Rs 400 from my daily earnings,” he said.
A management assistant at the Condominium Authority, Dinsh Wijethilaka told the Sunday Times that while the salaries of the state employees remained unchanged, the cost of living was soaring.
Also, people are inconvenienced because of scaled down services of the state sector.
Commodities markets are also not what they used to be and traders are worried.
Wholesale rice trader, David Raj, 51, who is based at the Pettah market said that prices of rice he received from Anuradhapura and Polonnaruwa had shot up due to higher transport costs.
Tharanga Deepal: People buy less due to the high prices
Millers have increased their prices, while the lorry operators charge Rs 6 extra for each kilo they bring to Colombo.
Mr Raj added that fewer retail shop owners are buying.
“Retailers also have to spend on plastic bags, pay hires for lorries and pay for the labourers who load goods onto lorries,’’ he said.
Vegetable vendors say shortages and rising transport costs have driven up prices.
A vegetable seller at the Pettah market, Tharanga Deepal explained he is unable to recover costs of transport. “Now, people buy less and I am unable to recover my expenses.’’
The prices of vegetables have risen due to rising transport costs and the shortage of agri produce as a result of the fertiliser crisis, he said.
A kilo of leeks costs Rs 300 and a kilo of eggplant is Rs 400. Even a kilo of banana pepper (malu miris) sells for Rs 800 and tomato is Rs 400 a kilo.
Lorry drivers who transport goods from Colombo to the provinces said they have a choice of either waiting in line or buying fuel from underground suppliers at high prices.
Ajith Priyantha, a lorry driver who operates between Colombo and Galle, said his costs have quadrupled because of revised fuel prices.
Besides, spare parts are costlier and prices of food and beverages have increased.
“If the lorry breaks down, we have no idea what the repairs will cost. If this becomes worse, lorry transport, too, would stop,” he said.
The new Minister of Trade Commerce and Food Security, Nalin Fernando, told the Sunday Times that he would give priority to food imports.
He said that due to the war in Ukraine, a global economic crisis and food crisis had been created.
These would negatively affect Sri Lanka.
He said that the food issue would be addressed by the new budget to be presented.
| Fuel the need of the hour for public transport operatorsPrivate operators of public transport services say the government needs to ensure an uninterrupted fuel supply. The Private Bus Owners Association president, Gamunu Wijeratne said there would be fewer passengers using bus services because the Government has asked only the essential staff to report to office. He said most of the bus fleet is not operating. “Until the Government cuts down state expenses and obtains international support, the economy will not be stabilised. It will affect transport negatively.’’ Three-wheel operators pointed out that the Government should at least regulate the industry and ensure standard fares. All Island Three-wheel Drivers Union president Lalith Dharmasekara said fair services should be ensured via regulation. He said protests and strikes would be useless.  A long three-wheeler queue outside a petrol shed: Three-wheel operators point out that the Government should at least regulate the industry and ensure standard fares. Pic by Hiran Priyankara Mr Dharmasekara said that he was sceptical about continuing fuel availability and people should be encouraged to use public transport. “Three wheelers should be public transport. But there should be regulation. Otherwise, how can we stop three wheel-drivers from charging different fares,’’ he said. The Association of Container Transporters also warned that exporters are facing tough choices. The head of the association, Roshan Manikawaduge said container truck drivers are facing a tough time in fuel lines. The group has written to the Indian Oil Company seeking priority and also met with Sagala Ratnayake following his appointment by Prime Minister Ranil Wickremesinghe. “Even though priority was not given, our services were made essential, But when container truck drivers give the letters at fuel stations they keep us in the queue. So, our drivers won’t turn up for work,” he said. Mr Manikkawaduge said many exporters must meet shipping schedules. Also, the Department of Railways has planned to put more trains into service to help reduce fuel use by vehicle owners. The General Manager of Railways, J .I D Jayasundara told the Sunday Times that the number of trains in service will be increased and people will be informed in the coming week. The new Minister of Transport and Highways, Bandula Gunawardena has said he will be restructuring public transport. He has asked that idling train carriages be repaired and be put to use. But, such a plan has existed from at least 2018 at Dematagoda and Ratmalana yards. | |
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