Govt. reduces fuel prices for third time

COLOMBO: The Government yesterday further reduced the price of petrol, diesel and Furnace oil- the third successive time it had done so in the immediate past.

Following the new price reduction the price of a litre of petrol has been brought down by Rs.5, a litre of diesel by Rs.2 and a litre of Furnace oil by Rs.2.

"On the directive of President Mahinda Rajapaksa, this is the third consecutive time that the Government took steps to bring down the fuel prices for the benefit of the public. If the fuel prices in the world market go down further, the Government will further reduce local fuel prices" Transport and Petroleum Resource Development Minister A.H.M.Fowzie told a media briefing last night.

According to the Minister if the fuel prices of World Market rise , the Government has no alternative but to increase local fuel prices. In a situation where the world fuel prices drop, it is the responsibility of the Government to bring down the fuel prices which will help to reduce the cost of living of the people.

The Government has already imported 60,000 Metric tons of oil and which is stored at the Muthurajawela storage complex. This complex has a storage capacity of 22.5 million Metric tons of oil, he said.

Due to the increase in the dollar rate from Rs.101 to Rs.107, the Ministry could not pass on the expected benefits to the consumers on the import of the 60,000 Metric tons of crude oil. At present the Government has to pay 58 US dollars per barrel of imported oil.

However, the Government following the decrease in world fuel prices, decided to further reduce the local fuel prices, the Minister said.

Minister Fowzie said as a result of the reduction of fuel prices on three consecutive occasions, those who are engaged in the transport sector should also reduce their transport charges.

"At this moment it is not reasonable to request private bus owners to reduce their bus fair rates. When the Government reduce the fuel prices next time, I will definitely demand private bus owners to reduce their bus fair rates," he said.

The Minister said either today or tomorrow he will discuss with the Private Bus Owners' Association on a host of existing problems in the private omnibus sector. The private bus owners should provide a satisfactory service and should be courteous to the passengers.

They should also issue tickets. "Otherwise we will have to go on a campaign against those who do not cooperating with us."

In addition, those who are engaged in transporting various consumer goods should also reduce their charges in line with the reduction of fuel prices.

" If they are not doing so, I in association with Trade and Consumer Affairs Minister Jeyaraj Fernandopulle will take action against them."