Overcoming oil price hike

The unprecedented surge in the global oil prices yet again has dealt a blow on the solar plexus of ailing third world economies.

The rise in diesel and petrol prices by almost 30% is sure to exacerbate the economic woes of these countries whose over-dependence on fuel to drive their economies have placed them in a vulnerable position.

Sri Lanka too naturally falls into this category where the global fuel price surge had once again sent it's economic calculations haywire that perhaps may force it to alter many of it's welfare and subsidy schemes that were in the pipeline. Beside there is still no knowing the extent of the cascading effect on prices of essential consumer good this latest fuel price hike is going to cause.

Already private bus operators are flexing their muscles demanding a 25% per cent fare hike if the Government refuses to grant them fuel at the pre hike rate. But the most telling impact no doubt will be on the electricity consumers already reeling under inflated domestic electricity bills.

And one can be sure that businesses and traders would more than make up for any deficit by jacking up prices disproportionate to the fuel price hike.

Even the humble roti and plain tea of the common masses would be caught up in this vicious cycle while the prices of vegetables and fish which necessarily has a transport component would spin out of control.

True, the Government is helpless in such a situation and has no option but to take measures to defray losses. Saddled with a costly war it's problems no doubt would be exacerbated.

Immediate steps should be taken to cushion the blow of this latest punch dealt to the economy and the economically marginalised sections spared from it's impact. The Government while not going into panic mode should nevertheless press the crisis button and request the cooperation of all citizens to overcome the present imbroglio.

Small sacrifices no doubt could snowball into large fuel savings for the Government and bring down the exorbitant fuel bill. To begin with motorists should be told to curtail unnecessary travel and also as is often suggested could take turns to transport friends and colleagues to offices in the city.

This while cutting down on fuel consumption could also ease traffic congestion and also reduce environmental pollution. There has often been calls for power conservation and Media exercises carried out in this regard. But it appears that this has not brought about the expected response.

Today we depend on diesel for 65 % of the country's power generation and the fuel price surge is going to have a telling effect on our generation capacity which may also necessitate enforced blackouts if people carry on in a laissez faire manner not heeding to the present crisis.

The biggest culprits as we have often stated in these columns before are the Government Departments. Walk into any state institution and one could not fail to notice the number of idle fans or air conditioners switched on to full capacity in untenanted space.

Only recently did we highlight with the photographic evidence of illuminated street bulbs in broad day light, opposite of all places the Ceylon Electricity Board Head Office. People can contribute in a small way by switching off unwanted electricity and turning off TV sets instead of keeping them stand by, which all means a waste of power.

True, all this will not help us tide over the immediate crisis but a collective effort in this regard would help us appreciate the current difficulties and minimise the impact of the full force of the fuel price surge.

Trade Unions too should act with a sense of responsibility and not make unreasonable demands at a time the Government is striving to wriggle out of the economic crisis resulting from the fallout of the fuel price hike. It is important that the country stands as one in overcoming the crisis.