By : A.A.M.NIZAM – MATARA

It is true that there is an upright increase in fuel prices due to a conflict situation between Iran and the United States and Israel’s indiscriminate barrage of rocket attscks on certain areas of Syria. The website CNBC.com which focuses on global commodity market situations reported on Thursday that crude oil hasn’t seen these kinds of highs in more than three years and queried whether will it stay there?” Boris Schlossberg, Managing Director of BK Asset Management, in response to this question has said that the answer lias in the Middle East.  Schlossberg has said that obviously geopolitics is what’s driving oil prices up at this point.

Crude oil has spiked 3 percent on Wednesday to settle at its highest level since November 2014. Crude’s rally, as per the CNBC, was in response to U.S.President Donald Trump‘s decision to abandon the Iran nuclear accord and an exit from that deal would reimpose sanctions on the oil-rich country Iran. Trump has promised to enact the “highest level of economic sanctions” against Iran, which would cut off the U.S. market from Iran’s oil exports. Iran exported more than 2.6 million barrels of oil per day in April, the third-largest crude exporter in the OPEC (The Organization of Prtroleum Exporting Countries). . Analysts say that U.S.sanctions could impact about one-eighth of total exports.

As per the Investing.com website crude oil price which was U.S.Dollars 67.25 on May 1^st has increased to U.S.Dollars 70.52 by May 11^th and it is likely to increase further in the coming days.

Now in Sri Lanka the government of dullards and dumbos who get much pleasure in marauding the people by whatever means possible has taken the global oil price situation as a pretext to oblige the IMF imposed conditions.  In a continuing chain of recemt price increases beginning with gas, potatoes, onions, powdered milk it has exorbitantly increased the fuel prices without any sympathy for the vehicle users and industriaists. The impact of this fuel price hike may have been felt more by the rural population and the poor ubran population if the previous government under the Mahinda Chintana goal of putting an end to the bottle lamp era intensified household electrification and increased electricity supply to 90% households in the country as they were using kerosene oil for lighting their houses and for studies of their children.

This bullshit government (equivalent categorization of Trump’s Shithole governments) adopted a despicable method to increase the price of fuel.  First it made its Indian stooge oil company LIOC to increase the prices and then the CEYPETCO followed with its suit.

Thhis fuel price increase has resulted in increase of fares by three wheels which is the cheapest mode of transport of the poor people to go on long journeys, to make family visits and to take patients to hospitals including pregrant mothers. The private bus fares are also to be increased in the next few days and the Raiways which totally depend on imported fuel have also urged the governnent to increase its fares.  As a consequence of this fuel price increase there will be an increase in transport chsrges, charges being levied by lorries and trucks resulting in an increase in the prices of rice, coconut, vegetables and also other goods and even in the cost of transport for export and import materials.  Alrrady container charges have been increased by 15%. All these changes will be a further burden for the masses and it would dilute the value of their earnings as already the gas price increase has shot the prices of meal packets and cups of tea.  Latest reports said that rates of electricity and water supply will aso be increased because of the fuel price hike

The designer turned Finance Minister Mangala Samaraweera who does not comprehend the ABC of economics and admittedly said that the FinanceMinistry portfolio were shoes too big for him, commenting on the fuel price ncrease has said that the prices of fuel will be revised every two months according to the new price formula, and they can increase or decrease and the price revision will be announced on the fifth day after the lapse of every two months.  But it is naïve to expect that there will be a decrease in the world market price based on the volatile situation prevailing in the Middle East and we Sri Lankans will be subjected to fuel price increases every two months. The ignoramus Mnister told a media conference, displaying his lack of knowledge on the subject, that he was informed that a barrel of crude oil price has been increased up to USD 77 soon before he addressed the press conference and therefore he believes that it could increase up to USD 80 due to the situation of crude oil manufacturers such as Iran. This in fact was an exaggerated figure compared to the actual world market prices.  He also stated that the government will be able to save Rs 55.89 billion with the new price revision.

The loquacious Rajitha Senaratne justifying the fuel price increase has told the media that the hike is meant to discourage motorists who were mixing subsidised kerosene with diesel to lower costs. He has said that CEYPETCO lost $63 million in the first two months of this year alone, and was unable to recover the cost of production. Even with the new increase in prices he has said that the government will only get its losses reduced and will not make a profit.  Similarly stupid statements have been made by several other Ministers as well.

The state Minister of Finance Eran Wickremaratne has said that the fuel price increase was good for the country and it would minimize environmental pollution, and the people will focus attention on using alternate energy resources. The joker among the Ministers John Ameratunga has said that the roads are full of vehicles ad people are going on excursions and the people does not feel about imposing taxes which only help the government to collect revenue.

However all these arguments and justifications by the government have been negated by credible reports appearing in websites and reported by the Island editorial dated 11^th May, 2018 saying that the government has imposed taxes amounting to Rs, 45.47 per litre of petrol and Rs. 23.25 per litre of diesel.  This factor shows that this shameless government has no concern to alleviate the sufferings of the people. What thr government should do to cushion the sufferings of the people is to revise the fuel prices anf get that amount by reducing the taxes being imposed on fuel but that cannot be envisaged from this heartless, pitiless, horrendous and ghoulish reactionary government. Therefore, the time has come for the people to come out to the streets, rise up against te government and hold unceasing protest demonstrations to demand for the immediare resignation of the government and hold fresh elections.