After massive 290% hike, Govt. to provide cash subsidy for kerosene

Tuesday, 23 August 2022 02:36 - - {{hitsCtrl.values.hits}}

Initiative specifically aimed at low-income families, fisheries and plantation sectors
Govt. justifies kerosene price hike, reveals plans on cash subsidies
Claims kerosene prices were not revised for many years
Opines selling petroleum products at subsidised rates were key reason for losses incurred by CPC
Reveals proposal to pay cash subsidy was by President Ranil Wickremesinghe during price revisions discussion

The Government yesterday justified the kerosene oil price hike, whilst revealing plans to provide a cash subsidy to dependents.

“With prices now on par with costs, the Government has proposed a direct cash subsidy to low-income families, fisheries, and plantation sectors that depend on kerosene oil,” Wijesekera opined via a Tweet yesterday.

The announcement of the subject Minister came following the Ceylon Petroleum Corporation (CPC) decision to increase a litre of kerosene oil by Rs. 253 on Sunday. A litre of kerosene oil was at Rs. 87 and it is now Rs. 340.

Many industries and low-income families lamented the price hike was unfair, pointing out that the poorest use kerosene for cooking and industrial purposes, as it remains the only option for them given the high cost of living amidst the ongoing economic crisis.

However, the Minister justified the decision to hike kerosene oil prices noting that it had not been revised for several years.

Minister Wijesekera also stressed the fact that selling petroleum products at subsidised rates was one of the key reasons for the losses incurred by the CPC.

Following the Tweet of Minister Wijesekera, Opposition MP Mano Ganesan welcomed the decision to provide direct cash subsidy to low-income groups to face kerosene price increase, whilst requesting to ensure poorest of poor plantation workers and Colombo’s low-income urban poor are included in the list of beneficiaries.

In response, Minister Wijesekera revealed that the proposal to pay direct cash subsidies to low-income families, fisheries and plantation industries was made by President Ranil Wickremesinghe, who is also the Finance Minister during a price revision meeting.

“It was not my decision to grant direct cash allowances. It was proposed by the President when the pricing revisions was discussed. The line ministries will have to work with the Finance Ministry to identify the low income families and sectors that will need the cash grant,” he responded via a Tweet.

MP Ganesan in response thanked Minister Wijesekera and said: “Let’s work on it beyond party divides, so the vulnerable marginalised segments of our communities are covered.”