No reason for a fare increase: Mangala

Finance and Media Minister Mangala Samaraweera yesterday said there was no reason for a fare increase in any of the transport or other logistics sectors on par with the fuel price revision announced on Monday night.

The Ministry of Finance and Media on Monday night announced that a litre of Octane 92 Petrol was increased by Rs, 6, litre of Octane 95 petrol by Rs.5, litre of Auto Diesel 99 by Rs. 4 and a litre of Super Diesel by Rs. 8, effective from midnight on Monday.

The new prices of a litre of Octane 92 petrol, Octane 95 petrol, Auto Diesel 99 and Super Diesel are Rs. 129, Rs. 152, Rs. 103 and Rs. 126 respectively.

Minister Samaraweera said according to the latest international market prices of crude oil the price of diesel should have been increased by Rs 9.59. But the government considering its effects on the public has decided to increase the price of diesel by Rs 4 to Rs 103 per litre.

“Fuel prices are reviewed every 10th day of the Month under the fuel pricing mechanism introduced in May 2018. When the oil prices were upwardly revised on the last October 10, the price of a barrel of crude oil had gone up to US Dollar 84. It came down to USD 70 by November 2018 and it was reported to be 53 when the fuel prices were last reduced on January 10, 2019,” Minister Samaraweera stressed.

When the fuel prices were increased for the first time in May 2018 under the pricing formula the local selling price of Petrol was Rs 137/litre and by now it has come down to Rs 129/litre. Diesel price which was at Rs 129/litre in May 2018 by today has come down to Rs 103/litre.

However, unfortunately, the bus fare, three wheeler fare and other transport charges were unreasonably increased in a higher percentage than the fuel price revision, he noted. (Sandun A. Jayasekera)