Mechanism to cushion effects of fuel hike

Rasika Somaratne and Ridma Dissanayake

The government has made arrangements to put in place a concessionary mechanism to cushion the effect of the fuel price hike on consumers. Accordingly, arrangements have been made to provide a subsidy on fuel to public transport providers buses,three wheelers,school vans,fishermen and the samurdhi beneficiaries living in villages which do not have electricity, with immediate effect.

The government is set to provide an advance from the proposed subsidy for the private bus owners from today itself, according to Deputy Secretary to the Treasury S.R.Attygalle.

Accordingly, the advance is to be deposited directly to the relevant private bus owners’ bank accounts in line with the decisions taken at a recent

meeting with the Private Bus Owners Associations and on the recommendation of the National Transport Commission.

Deputy Secretary Attygalle stated that the above agreement was reached in discussions with all stakeholders prior to the fuel price revisions.

The criteria for calculating the subsidy would be based on the number of working days and the travelling distance.

The proposed subsidy for three-wheeler owners would be based on the method adopted during 2008.

The fuel subsidy for Samurdhi beneficiaries who are living in villages without power would be credited to their Samurdhi cards.

Fishermen,school van owners, people living in areas without electricity would be provided fuel concessions after verifying their details from the Grama Niladharies, Divisional Secretariats and District Secretariats.

According to Attygalle, the above mentioned parties will receive their fuel subsidies from next month onwards and the government will prepare an efficient plan to implement the above..

However, Attygalle noted that the proposed fuel tariff revisions will not cover up the total losses incurred by the government. He said that the fuel price hike was the result of substantial increases in fuel prices in the global market.