Petrol, Diesel, Kerosene Prices Go Up

[sanjeev]

mahinda chinthanaya GO for Hybrid, tax on hybrid vehicles going to slash

[JadeyBlitzen]

expect to see more what's the fuel consumption of a particular model threads and more anal hybrid drivers and sellers claiming even more outrageous figures.

anyway there hasn't been a better time to sell your allion axio or vitz at a profit to some paranoid soul and buy your favorite gas guzzler cheap from another.

[Ripper]

Shortening that gap is really a bad thing. This is sure to raise prices of a lot of things that would need to be delivered by truck.

Exactly!!!

Everything from farm tractors to generators, fishing trawlers, trains, truck rund on diesel.

jacking up the prices a bit is alright but this sort of an increase is just insane.

Especially given the fact loads of public funds are busted on mega PR bs and other sorts of antiques that we really dont need.

If the govermnet can cut down on wastage, corruption and other malpractices...we wont be in this mess!

But i suppose a very few people will objetively critique! The fans will blindly support and the foes will use it as political tool.

When the dust settles, the average man living off from salary to salary is screwed!

But who cares...we beat the ltte!

[jdnet]

But who cares...we beat the ltte!

and we have the lotus pond!

Just imagine setting sail a large trawler today to find out your fuel bill went up by more than 25% and you need to find the extra cash to cover it.

[terrabytetango]

This price hike and the narrowing of the gap was inevitable. Better they did it now than later, when the deviation would probably have been even more. The GOSL has no choice but to align itself with the world fuel prices.

[jdnet]

This price hike and the narrowing of the gap was inevitable. Better they did it now than later, when the deviation would probably have been even more. The GOSL has no choice but to align itself with the world fuel prices.

What a bunch of crap. You sound like the spokesman for the ministry.

[nexus]

Shortening that gap is really a bad thing. This is sure to raise prices of a lot of things that would need to be delivered by truck.

i see your point and maybe in near future they increase petrol prices again and close this gap but at present time at least diesel vehicle owners stop boasting about how petrol liter cost nearly twice as much as diesel liter.

[varunatech]

i see your point and maybe in near future they increase petrol prices again and close this gap but at present time at least diesel vehicle owners stop boasting about how petrol liter cost nearly twice as much as diesel liter.

Actually so far the Petrol owners were paying for the Diesel and Kerosene. The tax taken from Petrol was used to cover the Diesel loss.

[Muditha420]

rata perata api walata..

Haha love this ...should make a car sticker out of this....in the mean time my plans to buy a B4 is also walata...ioooooo

[Muditha420]

Oh buy the way after the increase in fuel prices lots of private helicopters are flying around our area...today alone i saw 2 different choppers flying 4 times in different times

[Schiffer]

Haha love this ...should make a car sticker out of this....in the mean time my plans to buy a B4 is also walata...ioooooo

lol credit goes to our member CyRax for that statement.

and yeap owning a B4 defa walata. lol

[Muditha420]

Respect to Cyrax then i wanna a sticker with this on

[Kavvz]

Oh buy the way after the increase in fuel prices lots of private helicopters are flying around our area...today alone i saw 2 different choppers flying 4 times in different times

And the correlation is..?

[Kavvz]

Actually so far the Petrol owners were paying for the Diesel and Kerosene. The tax taken from Petrol was used to cover the Diesel loss.

Yeap and really that was a decent way of indirectly taxing the middle to upper middle class while promoting / subsidizing public transit services.

Its strange that the gap between petrol and diesel was narrowed. Apparently this now means that diesel is being sold at around cost and petrol above cost.

Edited February 13, 2012 by Kavvz

[terrabytetango]

What a bunch of crap. You sound like the spokesman for the ministry.

orly? Please, do elaborate.

[maheshw]

Schiffer, on 30 October 2011 - 09:27 PM, said:

rata perata api walata..

when the prices going up on world market as soon as like a rocket it's going up here. but when going down on world mkt no one decresing this. so everything will be now walatama thama..

[varunatech]

Yeap and really that was a decent way of indirectly taxing the middle to upper middle class while promoting / subsidizing public transit services.

Its strange that the gap between petrol and diesel was narrowed. Apparently this now means that diesel is being sold at around cost and petrol above cost to offset losses by the CPC etc.

You are correct, this is what they are doing. By the way as a principal I am not against correcting anomalies, but did they do it in the correct way is a question at large. The jump for Diesel and Kerosene may be bit too high for the common man.

And I sincerely expect they to correct the 95 Octane ridiculous price gap...............

[varunatech]

orly? Please, do elaborate.

I think Terabyte had no political biased motive in making this statement.He simply did mention what happened from a reality sense .

[jdnet]

i see your point and maybe in near future they increase petrol prices again and close this gap but at present time at least diesel vehicle owners stop boasting about how petrol liter cost nearly twice as much as diesel liter.

Seriously, this is a matter of NATIONAL IMPORTANCE. Not about diesel owners bieng smug. The price increment affects everything, right upto the plate of food you will have on your dinner table tonight.

[Kavvz]

Ah! The cat's out of the bag.

So the explanation for price of Petrol and Diesel narrowing, and the reason that diesel is no longer sold at a discount seems to be because the CPC can't (or doesn't want to) sustain the heavy subsidiary on diesel anymore:

Essentially the price of diesel was being subsidized by the price of petrol right? ( Which was essentially an indirect tax directed towards the middle class and upper class: While this was unfair to the population of those segments, it was essentially in the interest of the majority of Sri Lanka's population as it helped keep the price of common goods down. So all was good or well at least justifiable.) Well, judging by the 2006 Annual report released by the CPC (I couldn't find a newer one if there is one available please link it) the volume of diesel sales is about three times the amount of petrol sales. So I guess even though petrol is sold at a hefty premium, not enough petrol is sold to offset the subsidiary on diesel.

Based on the new price changes its been calculated that diesel is now being sold at cost and petrol is being sold at a premium. Selling diesel at cost whilst still maintaining a premium on petrol means that the CPC is now projected to generate a pretty significant income from bulk product sales going forward.

While its great that this change allows the CPC to improve its financials; its shitty overall as this means the middle class and the upper class are still being taxed indirectly, with no direct benefit flowing to the lower income segments.

For data on petrol vs diesel sales: See 2006 annual report, page 30- DOMESTIC SALES OF BULK PRODUCTS:

Edited February 12, 2012 by Kavvz

[jdnet]

Actually so far the Petrol owners were paying for the Diesel and Kerosene. The tax taken from Petrol was used to cover the Diesel loss.

so what if petrol vehicle owners pay more? driving is a privilege. If you choose to drive a vehicle then you would need to pay taxes. If you don't want to pay more than the diesel owners, then take the bus or ride a bicycle. The fact is that the system of using higher petrol prices to offset the cost of subsidizing diesel has been a good one for many years. I have no problem in paying more for petrol. If you can afford a car, surely you can afford to pump gas. You not being able to afford to pump gas isn't going to make people starve. What will make people starve is when the prices of food increase and the little money they earn is not enough.

If the government thought that induviduals were getting down diesel vehicles for personal use because it's cheaper, what they should have done was to tax those imports more or ban them altogether.

As a developing country we all need to make sacrifices so that everyone in the country can have a meal. To make sure that's possible we need to keep the prices of fuel used for delivery, fishing, farm equipment down. If that means you need to pay more at the pump to drive your axio, so be it.

At the end of the day, this isn't about losses generated by subsidizing diesel, it isn't ab out luxury vehicles, it isn't even about world oil prices. It's all about the governments inability to stop graft and wasteful spending.

[varunatech]

so what if petrol vehicle owners pay more? driving is a privilege. If you choose to drive a vehicle then you would need to pay taxes. If you don't want to pay more than the diesel owners, then take the bus or ride a bicycle. The fact is that the system of using higher petrol prices to offset the cost of subsidizing diesel has been a good one for many years. I have no problem in paying more for petrol. If you can afford a car, surely you can afford to pump gas. You not being able to afford to pump gas isn't going to make people starve. What will make people starve is when the prices of food increase and the little money they earn is not enough.

If the government thought that induviduals were getting down diesel vehicles for personal use because it's cheaper, what they should have done was to tax those imports more or ban them altogether.

As a developing country we all need to make sacrifices so that everyone in the country can have a meal. To make sure that's possible we need to keep the prices of fuel used for delivery, fishing, farm equipment down. If that means you need to pay more at the pump to drive your axio, so be it.

At the end of the day, this isn't about losses generated by subsidizing diesel, it isn't ab out luxury vehicles, it isn't even about world oil prices. It's all about the governments inability to stop graft and wasteful spending.

My friend, my worry so far not about the usual car owner. Please do mind that there are so many bike, three wheel owners. Bike owners are school teachers, clerks, farmers, shop to shop sellers. These folks were paying for the diesel.

And the CEB was guzzling Diesel to generate power, because CEB plus the previous politicians had no vision for the energy requirements or they just did ignore as they could make few bucks by getting rented electricity. Railway was sent in drain, making the lorry transport industry thriving and making all Mudalali's happy. All these diesel was payed by the poor biker, and people whom afforded a car with great difficulty.

I am sorry my answer was not showing the high level picture..............

In summary our system is a mess, correcting the entire system create chaos........as a country we need to correct the energy crisis, we need to reestablish the rail transportation and also widen the network.....etc...etc....

Please note my comments are not politically biased, I simply like my country and never whines on what it has to offer for myself.......

[jdnet]

My friend, my worry so far not about the usual car owner. Please do mind that there are so many bike, three wheel owners. Bike owners are school teachers, clerks, farmers, shop to shop sellers. These folks were paying for the diesel.

All these diesel was payed by the poor biker, and people whom afforded a car with great difficulty.

Once again, it's still a privilege.

Please note my comments are not politically biased, I simply like my country and never whines on what it has to offer for myself.......

Have you any wool?

[terrabytetango]

Srsly, no point in arguing over spilt milk. What's done is done. Time to get our own back at all the sneering diesel owners imho.

[jdnet]

Srsly, no point in arguing over spilt milk. What's done is done. Time to get our own back at all the sneering diesel owners imho.

And it's that type of thought process that gets up deeper into this hole each time.