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Reduce fuel taxes to maintain price stability: Former CPC Chairman
By Charithya Kumarasiri
Colombo, March 16 (Daily Mirror) - Former Chairman of the Ceylon Petroleum Corporation, Mohomed Uwais Mohomed, says the government should consider reducing taxes on petroleum products to keep fuel prices stable in Sri Lanka.
Speaking at a media briefing, he said Sri Lanka is fully dependent on imported fuel and warned that rising global oil prices could create further pressure on the local economy.
“We have already increased the price of all petroleum products by Rs. 25, and global market prices are expected to rise further. Therefore, the government should look at reducing taxes to ease the burden on industries and consumers,” he said.
He noted that tax reductions could be used as a form of subsidy to maintain price stability and prevent sudden increases that affect transport, production and the cost of living.
Mohomed also warned that geopolitical tensions in key global oil routes could disrupt fuel supply worldwide. He pointed out that apart from the Strait of Hormuz, another important shipping route between Yemen and the African continent also carries a large share of global oil transport.
According to him, nearly 12 percent of global oil shipments pass through that route, and if both routes are affected, up to 35 percent of global oil transportation could be disrupted, creating serious difficulties for fuel-importing countries like Sri Lanka.
He added that Sri Lanka must adopt strong strategies to protect its fuel supply, including maintaining good relations with suppliers, managing fuel stocks properly and ensuring the distribution network remains stable despite global uncertainties.
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