government rules out shutdown of economic activities over fuel prices

Government expecting to maintain continuous fuel supply in the country

Fuel prices were increased to reduce consumption

New fuel stocks had to be purchased at higher rates after depleting stocks in the country 

Govt. discussing to provide short-term concessions if fuel prices in the world market increases 

The government is not expecting to reduce fuel consumption by closing a section of the economy  

Even Saudi Arabia has increased fuel prices by 4 percent. 

By Ajith Siriwardana   

While some countries are taking various measures to reduce fuel consumption amidst sky-rocketing fuel prices due to the tension in the Middle East, Cabinet Spokesman Minister Nalinda Jayatissa said yesterday Sri Lanka is not expecting to reduce fuel consumption by contracting economic activities.   

The Minister told the weekly briefing to announce Cabinet decisions that the government is expecting to maintain continuous fuel supply in the country.   

He said this while responding to a question whether Sri Lanka will take action similar to some countries such as Pakistan and Bangladesh that have taken steps to close schools and universities temporarily and introduce work from home for some institutions due to the fuel crisis.   

“The government is not expecting to reduce fuel consumption by closing a section of the economy,’ he said.   

The Minister said fuel prices were increased aiming to reduce consumption and new fuel stocks had to be purchased at higher rates after depleting the stocks in the country.   

He said fuel consumption increased remarkably during the last few days where diesel consumption increased by 23,000 tonnes between March 1 and 9 while petrol consumption increased by 13,000 tonnes.   

“The normal diesel consumption is 4000 to 4400 tonnes daily. However, 59,200 tonnes had been used from March 1 to 9 and petrol 47,500 tonnes for the same period. Our fuel stocks depleted and had to order new shipments at higher rates. That is one reason for fuel price increase. The fuel price must be increased by even higher rates but we did not increase at higher rates as our economy can’t sustain it,” he said.   

The Minister said if the fuel prices in the world market tend to increase in massive amounts in the coming days, the Finance Ministry is having discussions to provide short-term concessions for fuel.   

Responding to a question, the Minister said fuel prices have been increased in many countries that have ample fuel stocks adding that even Saudi Arabia has increased fuel prices by 4 percent.   

“Fuel prices have been increased by 21 percent in Pakistan, 19 percent in Vietnam, 13 percent in the United States and 12 percent in New Zealand,” he said.