Govt. should use funds in treasury to provide concessions instead of increasing fuel prices – Harsha

Harsha de Silva, the Chairman of the Committee on Public Finance and a Member of Parliament, has urged the Sri Lankan government to use the funds in the treasury to help the public instead of raising fuel prices due to global trends. He believes that the treasury has enough buffer stocks to manage the temporary challenges caused by the ongoing conflict in the Middle East. During an appearance on the Derana ‘360°’ program, MP de Silva pointed out that there are multiple ways to stop fuel prices from rising. He mentioned that there is a tax of about Rs. 118 per litre of fuel, and additional logistical charges plus Value Added Tax (VAT) further increase the price. Since the rise in fuel prices is just a temporary issue and will affect other areas, he highlighted the need to wisely use the buffer of around Rs. 750 billion in the treasury to avoid further price hikes on goods and services. He also noted that a request has been made to raise electricity tariffs, which would make life harder for both industries and the public, especially following the COVID-19 pandemic. MP de Silva warned that due to rising crude oil prices globally, the import of low-quality coal, and expected low rainfall in the coming months, electricity prices are set to go up. He emphasized that the government should not simply let prices rise, as this would place a heavy burden on industries and the public, and called for the government to take action quickly. Additionally, Mayura Neththikumarage, the Managing Director of the Ceylon Petroleum Storage Terminals Limited (CPSTL), has explained the reasons behind the fuel price increase that occurred yesterday.