No move to increase fuel prices - Fowzie

Rasika Somarathna

COLOMBO: Petroleum and Petroleum Resources Minister A.H.M. Fowzie yesterday assured that the Government had no immediate plans to increase fuel prices.

On the contrary, his Ministry was looking at all avenues to bring down the price of fuel.

The Minister pointed out that the Government had no option but to go for a hike recently due to price fluctuations in the world market.

According to him the price of a barrel of petrol was US$ 56 in January and in July it recorded a 64 per cent increase in the world market.

During the same period diesel went up from US$ 64 to US$ 90 per barrel but the Government only increased prices by 20 per cent, Fowzie said.

The Minister also pointed out that although the UNP was making a lot of noise regarding the recent price hikes they too adopted the same course in the face of price fluctuations.

During the UNP regime they did not even give a subsidy for fuel, the Minister charged while adding that this Government bore the brunt of price hikes with a subsidy of Rs.21 billion in 2005 in addition to supplying fuel to the CEB, at a rate which was Rs.20 less per litre than the normal price.

All these steps were taken considering the hardships faced by the consumers, the Minister said, adding that his Ministry was looking at the possibility of improving refinery facilities to bring down costs.

Fowzie said the Government was looking at the possibility of bringing down the price of kerosene considering its impact on low income earners.