With the reduction of fuel prices people hope costs of essential goods and services will fall
Dambulla Economic Centre Trade Association Chief says when demand for vegetables increase, prices also will increase
Three wheel drivers reduce fares, but appeal for fuel quota to be increased to more than five litres for a week
With the reduction of fuel prices, peoples' expectations are running high that benefits will come to them by way of price reductions in essential goods and services.
Reductions in bus and three wheeler fares, were among some of the benefits the people received immediately, while container transport charges too were reduced and were expected to bring in indirect benefits.
The retail price of Petrol 92 was reduced by Rs. 60 for litre, Petrol 95 by Rs. 135, Lanka Auto Diesel by Rs. 80, Super Diesel by Rs. 45 and kerosene by Rs. 10 from midnight on Wednesday.
Despite the reduction of fuel prices, Sri Lanka Railways General Manager W. A. D. S. Gunasinghe said the decision of reducing prices is a “Government policy decision” and has not yet been officially informed of a price reduction.
Container Transporters Association President Roshan Menikwaduge said their committee has reduced haulage prices by seven per cent. From Thursday onwards, clients were able to receive the benefits of reduced prices since they pay on a credit basis.
Expectations were high that the fuel price reductions would also have a bearing on vegetable prices which are transported by lorries from outstation areas to the main towns.
However, Manning Market Deputy Chairman Prabath
Susantha said the reduction in fuel costs would not affect vegetable prices much due to the shortage of vegetables coming into Colombo.
He said there was heavy rain in the Nuwara Eliya district recently, and it destroyed a large quantity of vegetables. Moreover, with the increase of pesticide prices, farmers did not use it, leading to pests to breeding on vegetables by the time the consignments arrived.
"A kilo of cabbage which was sold at between Rs. 20 and Rs. 30 last week, is Rs. 100 now. The prices may increase next week,” Mr. Susantha said, adding that decreasing fuel prices would do little to help.
But, Dambulla Economic Centre Trade Association President Shantha Ekanayake said the reduction in fuel prices would bring in more customers.
He said prices were decreasing as transport costs would decrease enabling the people to buy more vegetables. However, when the demand increased, prices would also increase. Mr. Ekanayake said the production of vegetables was sufficient for the festival season.
All Island Three Wheeler Drivers Union President Lalith Dharmasekara said they reduced their fares to Rs. 100 for the first kilometre and Rs. 80 for each kilometre after that, from Thursday onwards. However, this involved only three wheelers with meters, and whose drivers did not run at a fixed price previously.
In rural areas, three wheeler drivers charged Rs. 120 for the first kilometre and Rs. 100 for each kilometre after that, while most urban
three wheeler drivers charged between Rs. 90 and Rs. 100.
While appreciating the reduction in fuel prices, Mr. Dharmasekara expressed distress that only five litres were being provided for them weekly.
The fuel price reduction came amid large scale trade union action and Power and Energy Minister Kanchana Wijesekera took a tough stand, by ordering compulsory leave for 20 employees of the Ceylon Petroleum Corporation (CPC).