Govt. Will Reduce Fuel Price But Will Find Other Ways For Exploitation

[Pericles]

http://www.lankaenews.com/English/news.php?id=6403

(Lanka-e-News, September 18, 2008, 11.45 PM) The government is to introduce a surcharge of Rs. 10 per liter of petrol and Rs. 15 per liter of diesel.

The government is reportedly planning to reduce the fuel prices to some extent and impose a new tax on fuel without giving the advantage of decreasing fuel prices to the masses.

The state already levies Rs. 25 per liter tax from fuel and it is imposed on locally refined fuel too.

Meanwhile, the Chairman of the Ceylon Petroleum Corporation (CPC) says that the government firms are in debt of Rs. five billion to the CPC. Of it, Ceylon Electricity board (CEB) owes Rs. four billion while security forces, police, Railway Department and Mihin Lanka airline jointly owe Rs. one billion.

CPC supplied fuel to these firms on the promise that the Treasury would grant concession to the CPC. But it was not activated by the present government.

I, for one, don't give a rats ass about money owed by the CEB. We already pay the damn CEB for their services (or lack of it) so we should have to pay to cover their incompetence and debts too. And for damn sure we shouldn't be covering the losses made coz the CPC was dumb enough to loan fuel. If those institutions are in debt, they should recover the money from those institutions, not the damn consumer. We are already paying the govt tax to run the security and police anyway.

And I'm quite sure there are still idiots who will say something about the war to try and justify this. As if Mihin Airs fuel bill is somehow tied up to the war effort.

[Pericles]

The Daily Noise has this to say,

http://www.dailynews.lk/2008/09/24/news15.asp

KOTTE: Petroleum and Petroleum Resources Development Minister A. H. M. Fowzie yesterday told Parliament the Opposition should not attempt to make political mileage even though the price of a barrel of crude oil came down in the world market just within a single day.

And more, read the article.

I believe the answer should the "Petroleum Minister should not attempt to make huge commissions when the price of the barrel goes up".

[ash]

From Daily News Today

KOTTE: Petroleum and Petroleum Resources Development Minister A. H. M. Fowzie yesterday told Parliament the Opposition should not attempt to make political mileage even though the price of a barrel of crude oil came down in the world market just within a single day.

Despite claims made by the Opposition that the price of a barrel of crude oil had gone down to 90 US Dollars, the price of a barrel of crude oil had gone up to 109 US Dollars in the world market yesterday, he said.

According to the Minister, the CPC has incurred a loss of

Rs. 11 billion during the period from January to May this year. The total loss incurred by the CPC at present amounts to Rs. 17 billion.

The Minister said a gazette notification has been issued to charge Rs. 10 cess tax per litre of diesel and Rs. 15 cess tax per litre of petrol. The CPC has to incure a loss when a litre of diesel is sold at Rs. 110. When the fuel prices in the world market were increased on several occasions the CPC did not increase fuel prices. If fuel prices have gone down in the world market, the CPC has no possibility of reducing fuel prices at once, the Minister said. The Minister was responding to a statement made by the Chief Opposition Whip Joseph Michael Perera.

The Chief Opposition Whip said the Government should utilise the money obtained from the people under its fuel formula to provide relief to the people.

He said at present the price of a barrel of crude oil has gone down to 90 US Dollars in the World Market.

There is a possibility of reducing the prices of crude oil furthermore. According to the fuel formula operating in Sri Lanka, there is a possibility of selling a litre of petrol at Rs. 110 and a litre of diesel at Rs. 80.

Opposition Leader Ranil Wickremesinghe said when the fuel prices have gone down in the World Market, why can’t the Government reduce the prices of fuel by giving that advantage to the people. A cess tax has also been imposed on fuel without even informing Parliament.

JVP MP Anura Kumara Dissanayake said when world fuel prices have gone down, the Government has taken steps to impose an additional tax on fuel by further increasing local fuel prices.

This is not a move taken by the Government to cover up the loss incurred by the CPC. The Government is continuing this process to overcome the huge financial crisis faced by the Treasury.

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Ahhh…. Peri… you were faster than me on that….

They picked on the hike of the petroleum prices of the US market yester day. Were they sleeping when it was going down? They might say “ahh… prices of crude has gone up again in the US… It’s time to increase the prices here again”

Edited September 24, 2008 by ash

[Gummybr]

.............................

Ahhh…. Peri… you were faster than me on that….

They picked on the hike of the petroleum prices of the US market yester day. Were they sleeping when it was going down? They might say “ahh… prices of crude has gone up again in the US… It’s time to increase the prices here again”

This is what I dont understand, how can they make a loss on fuel when they do impose tax on Petrol (which in their case is pumped by the richest people in SL and is widely used) even selling at Rs. 157/- and diesel at 110/- (I can see the loss made on diesel {as per govnmt / which I dont believe is the truth})

They are supposedly having stocks of fuel bought at $135 in tons. According to some paper (cant remember which) a new consignment of fuel was due on the 15th of September. So did our people still buy fuel at 135??

They should reduce the fuel price at all cost without waiting for another Chinthana budget to bring down prices thereby politicalizing the fuel issue themselves.

Agree with you peri, why should we pay more money because the govnmt deptmnts are in great debt to the petroleum corporation. Well its an internal issue aint it? why should the normal tax paying public pay for their sins when we have too much on our plate to worry about?

These fools dont realise that indirectly other services are affected by the increase in fuel prices.

Saw in papers that govt has acknowledged that Mihin air was mismanaged but why are they still trying to revive it without paying its debts to CPC and other govt institutions? Still again its our own epf money aint it?

[GihanFX]

Hey Hey they need all the Money to buy 6 planes for Mihin Agian, lol, this time they gona do better managment so it will close within a week or so... anyway they can easily reduce the petrol price to 100 but they wont do it cus the Jumbo cabinet members need to earn moeny for their grand children..

In Sl no govenment reduce anything and the sad part is even the govenments change the ministers will be the same, Even in UNP and PA Mr, ######## G always a minister so if UNP comes to power again he will go back to the UNP......... JVP, JHU and other parites will always act like idiots and they will do anything for money

This country is so f**ked up....... they only reduce the fuel price lil bit if an Election is close by and they will increse it agian after they win...... Dont Vote and forget politics its a waster of time

[Arc Angel]

DAMN!!!!

And here I was, foolishly clinging on to a glimmer of hope that maybe, just MAYBE, fuel would go down. Why, oh why????????????

I know that there was a straw which broke the camels back, but our gvmt would prolly flog that poor camel till it dragged itself miserably along the floor! I mean, COM ON!!! There has to be a limit to the freakin "consumer must GIVE GIVE GIVE" attitude...

Edited September 24, 2008 by Arc Angel

[dinosh]

Heard about the new tax on fuel on radio news. This is damn sh*t!!! Since the damn mismanaged govt institutions cannot pay their own fuel bills the public has to suffer for it.

CEB alone owes 4 billion to CPC, wasn't this the main reason that they increased the elecricity charges by about 40% recently!!

Mihin was a disaster & still it is... I heard that the lower level employees are still getting their pay every month being the only airline in the world without air crafts.

All guys who work surely understand the intensive cost pressure created in our work places due to the rising costs! reduce the damn fuel a bit when they can try to ease pressure on the private sector.

Edited September 24, 2008 by dinosh