Source: Daily Mirror (03 June 2008)
No ration of fuel but urge people to reduce usage
By Deepal V. Perera
In the wake of escalating international oil prices, coupled with pressure on domestic fuel and energy costs, the Government yesterday announced the introduction of an energy audit on all government institutions as a measure to curb down expenditure.Minister for Finance, State Revenue and Deputy Minister for Finance Planning, Ranjith Siyambalapitiya made this announcement yesterday at a media conference held to explain the reason for the current oil prices and the consumption of fuel.
"We are hoping to start this power audit next week on every government institution in order to ascertain how much energy is being consumed by these institutions and implement energy -saving measures to them. We also invite the private sector follow the suite." the minister said.
Commenting on the increase in oil prices, the minister said that such an increase is a global problem which is equally affecting all countries in the world irrespective of whether they are producing oil or not.
He said that in the last year the Government had to spend a total of US$.2.5billion on its crude oil imports.
"This year this figure is expected go even higher and affect the country's net foreign income. Therefore we would like to urge the public to consume fuel carefully" the Minster noted adding that "there is also a proposal to introduce a fuel ration but we had to turn it down as the introduction of such a system will further complicate things in the economy.
Therefore we are not going to introduce any sort of measures in the selling of fuel to the public but are instead urging them to use it at minimum level".
The minister also refuted the charges leveled against the government that there is a undisclosed tax included in the fuel prices. "In January this year we reduced the 15% VAT charge to 5% on petrol and removed the crude oil Port and Airport Import Tax (PAL) in January. In 2004 we completely removed the 15% VAT charged on diesel" Minister said.
Minister Siyambalapitiya also charged that if the fuel pricing formula which was introduced during the UNP regime in 2002 had it continued, the price of petrol would have become Rs.189.47 and diesel would be selling at Rs.169.60 when the international price for oil stood at US$135.
"But in the current circumstances we are selling at only a lesser price due to the fact we are not using any formula." He said.
Commenting on the number of vehicles used by the Government sector Minister Siyabalapitiya said that the total vehicles owned by the government was less than 15,000 vehicles and out of this 9,500 vehicles belonging to Government and the Provincial Councils while the rest of the vehicles numbering around 3,000 are owned by the corporations and Government-owned institutions. The annual fuel allocation for the entire Government-owned fleet except the CTB stands at Rs.3billion. "We also give diesel at Rs.100 per litre to the CTB and Sri Lanka railways at a concessionary price" the Minister said.
Minister Siyambalapitiya also said that future predictions for international oil prices is that it will reach the US$200 mark and therefore there is little that one country can take in this kind of a situation.