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The wheels coming off the transport sector

03 Mar 2022

As Energy Minister Udaya Gammanpila himself said, what Sri Lanka is facing at present is not a crisis of goods and services, but a crisis of US dollars, or foreign reserves, and until Sri Lanka manages to earn and save sufficient foreign reserves, the situation is likely to persist, although intermittent fuel imports can alleviate the situation to some extent. However, neither the country nor the Government can afford to wait until permanent solutions are found, as economic activities are plunging deeper into the prevailing crisis every passing day. Furthermore, owing to the declining quality of life as well as other practical issues such as the unequal distribution of fuel and certain areas being exempted from power cuts, have caused this economic crisis to morph into a social crisis. Therefore, it is extremely important that the Government takes whatever measures it can take, immediately. The situation shows signs of getting worse and the country’s transport sector, especially public transport, is likely to be affected prior to other sectors. This week, the private bus and train sectors warned of limiting and/or completely stopping those services. Meanwhile, taxi operators have also expressed concerns about having to further increase their charges and some taxi operators have already opted for the increase of charges. In this context, it is important that the Government identifies its priorities. The transport sector, especially the public transport sector including taxi services, must be one of the priorities of the Government, because of the simple reason that the disruption of those services has a direct and unparalleled impact on the country’s workforce. The use of public transport services is in fact on the rise, as people have had to report to work in the face of power cuts that render them unable to work from home. This increase in people abandoning working from home to travel to their offices significantly increases the threat of the spread of Covid-19 and could even lead to a new wave of infections. The Government should understand the realities and impracticalities of expecting people to adhere to certain Covid-19 safety guidelines, i.e. maintaining social distancing in public transport services, due to such services being extremely limited and congested. Therefore, the Government needs to revisit the guidelines applicable to the transport services and issue more practical and realistic measures. At the same time, the importance of transport for other crucial sectors, such as the fisheries and agriculture sectors, needs to be identified, and those sectors should be prioritised in the provision of the available fuel stocks. Towards this end, the Government will likely need to limit the amount of fuel it allocates for private vehicles. The extent to which such a measure would help Sri Lanka conserve fuel to keep afloat sectors that significantly contribute to the economy remains to be seen. However, it appears to be a difficult but sensible decision given the gravity of the fuel crisis. This prioritisation of crucial sectors could also mark the beginning of more systematic and scientific distribution and provision of fuel. Another measure the Government could adopt is designating certain fuel stations for specific important sectors, instead of permitting all types of vehicles to gather at all fuel stations. This would not only reduce congestion at fuel stations, but also reduce, to some extent, possibilities of arguments and clashes at fuel stations between frustrated fuel consumers, which Sri Lanka witnessed over the past few weeks. What is more, as has been pointed out by many, if the Government is serious about pulling through this crisis, it ought to look at its underlying causes and the factors that have exacerbated it. Practical matters, policies, and decision-making processes related to the management of the fuel supply, importing fuel, and fuel pricing, should receive more attention than they do at present. On the one hand, there is a need for a systematic formula for fuel pricing such as that introduced by the United National Front (UNF)-led Government in 2018, which even figures within the present Government have advocated recently. The fuel supply sector is not one the Government, or any other non-state party, can take lightly, as the future of businesses and livelihoods depends on it. If the Government does not adopt the measures it must adopt until Sri Lanka restores the supply of fuel, this crisis is likely to reach unmanageable and unbearable proportions over the coming weeks.


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