Declining rupee, rising oil prices reverberate through P’ment

• PM tells House rupee dip is due to stronger dollar, says it is a global issue
• Anoma says fuel prices facing upward pressure

 By Ashwin Hemmathagama – Our Lobby Correspondent

With the Sri Lankan rupee hitting a record low of Rs. 166.64 yesterday, Prime Minister Ranil Wickremesinghe told Parliament the depreciation was inevitable and a global phenomenon common to all nations. “It is a question of why the dollar is getting stronger against all other currencies. Among many other currencies, the US dollar has strengthened. Due to this appreciation, the prices of goods have escalated in many countries. This is a global issue,” said the PM, offering the Opposition a full day’s debate.

Wickremesinghe, referring to global fuel price fluctuations, stated that Sri Lankans would benefit from the fluctuations. 

“When the prices go down the public will enjoy the benefit. When the price goes up the impact will have to be borne by the public,” he said.

Responding to a supplementary question, Petroleum Resources Development Deputy Minister Dr. Anoma Gamage said: “Oil prices have gone up all over the world. As at 1 August a barrel of 92 Octane petrol stood at $ 81.31. This has gone up to $ 86.55 by 3 September. There is a possibility the price will further increase. Generally, the prices go up with the winter. We expect the prices to come down in February, March 2019 using the pricing formula.”

According to the Deputy Minister, a key issue the public experiences is the prices, which go up along with the increased fuel price, never come down with fuel price stabilisation at normal levels. 

“We should find a system to bring in effective price control on things currently not covered by a price control mechanism. When the diesel price goes up the price of goods goes up. But these increased prices will not come down along with the diesel prices coming down,” she said.