June 12, Colombo: The Cabinet has given approval yesterday to reduce the price of kerosene to Rs. 70 from Rs. 101 per liter. The kerosene price was increased by 57 rupees from Rs. 44 per liter during the recent revision of fuel prices on May 10.
This decision has been taken as a relief measure for low income families and the fishing community.
On several occasions fishermen asked for a fair price for kerosene which is used to power their fishing boats. The Ministry of Fisheries said that after discussions with the President and the Prime Minister, the kerosene price was reduced to provide relief to the fishermen.
Kerosene price was heavily subsidized to benefit the low income families that do not have electricity and the fishermen community. However, it has been revealed that some bus and lorry owners and some industrialists are taking advantage of the subsidy using kerosene as fuel, State Minister of Fisheries and Aquatic Resources Development Dilip Wedaarachchi says.
Meanwhile the Ministry of Finance says the producing a liter of kerosene costs Rs. 100 and the government incurs a loss of Rs. 30 from every liter of kerosene at the reduced price. The government will incur a loss of Rs. 5,715,000 per day due to the subsidized price, the Finance Ministry says.
However, the fisher community says the government reducing the kerosene price is a great relief for the fishermen.