• Bus fares set to rise by 5%; 
• Farmers warn rice production costs could climb to Rs  140 per kilo

The latest fuel price increase, which came into effect yesterday (31 May) is expected to have a significant impact on several sectors, particularly transport and agriculture, with industry representatives warning of rising operating costs and potential price increases.

Speaking to The Daily Morning, Lanka Private Bus Owners Association (LPBOA) President Gemunu Wijeratne said that private bus operators had decided to seek an increase in fares by five per cent following the diesel price hike. “At the moment, we have the right to seek an overall fare revision. There are 12 factors that are taken into consideration when determining bus fares. We are seeking a broader revision later this month. For now, we have decided to seek an adjustment of fares based on the increase in diesel prices,” he said.

However, the National Transport Commission (NTC) stated that no revision of bus fares would be implemented despite the latest increase in fuel prices. The announcement came after the LPBOA's requested an interim fare revision following the fuel price increase.

Meanwhile, National Agrarian Unity (NAU) President Anuradha Tennakoon, speaking to The Daily Morning, said that the fuel increase would place additional pressure on farmers and could push the cost of producing a kilogram of rice to around Rs  140. “We are about to begin harvesting in several areas and diesel is essential for agricultural operations. We hope the Government will intervene and provide a fuel quota for farmers  Otherwise, agriculture will no longer be a profitable sector and many may be forced to leave the industry,” he said. 

The All Island Bakery Owners Association (AIBOA) also stated that a price increase may become unavoidable if production costs continue to rise. “The prices of ingredients have not increased yet. However, if LP gas prices go up, we may have to consider increasing bakery product prices,” Association President Harshana Rukshan said.

The All Island Three-Wheeler Owners Association also expressed concern over the situation, noting that operators continue to face difficulties despite repeated requests for fare revisions and fuel support. Association President Lalith Dharmasekara told The Daily Morning that three-wheeler operators had still not received an adequate fuel quota and that the Government had not yet gazetted revised fare rates. “No matter how much fuel prices increase, we cannot simply raise fares on our own,” he said.