• School transport operators announce 5% fare increase amid diesel price surge
• Bus owners warn margins shrinking as fuel costs eat into daily earnings
• Parents fear further pressure on education expenses ahead of April season
• Consumer groups predict rise in food and essential commodity prices

Sri Lankans usually await fuel price changes on the last day of each month, as it has become a new normal. However, on Tuesday (10), an unannounced price hike of about 8% was observed despite assurances that adequate stocks were available, leading to public criticism and displeasure.

As a result of this recent revision, the rising cost of living has created a knock-on effect across multiple industries. For the majority of Sri Lankan households preparing for the upcoming festive season in April, the possible rise in transport and food prices, along with increases in school van and bus fees, is causing further financial pressure on their monthly budgets.

In this backdrop, The Sunday Morning spoke to the public, trade unions, and consumer unions facing the brunt of such decisions, noting their views on the current situation.

Bus fares

With the latest increase in fuel prices leaving operators with little choice, the All-Island School Children’s Transport Association (AISCTA) announced a 5% increase in school transport fares, effective from Tuesday.

Speaking to The Sunday Morning, AISCTA President Lalith Chandrasiri Fernando stated that despite past fluctuations in diesel prices, there had been no revision of fares implemented by the Government, even though discussions had taken place. However, in order to cover the additional costs incurred by the fuel price hike, school transportation fees had been increased by small amounts, which Fernando said did not cover other expenses associated with the livelihood, such as tyre repairs, food, and other operational costs.

“If we increase the fees only to cover the diesel price, it will become nearly impossible for us to function. That is why we increased it by 5%. We are interacting with parents and we need to be able to continue working while not inconveniencing them,” he said.

Fernando added that some bus drivers claimed they would not change their prices without any proper basis, making such declarations under the name of unregistered associations, causing further conflict among school transport operators.

Private school transport operators also described the prevailing situation as a struggle for both operators and parents. S.A. Lasantha, a private school transport service owner who owns six school vans and buses, warned that if fuel prices continued to increase, school transport operators would be placed in a very vulnerable position. According to him, operators face challenges beyond fuel costs, as increases in fuel prices also raise maintenance expenses and other operational costs.

Lasantha further noted that to his knowledge, the new fares had not yet been implemented, although the increase had been proposed. “Fuel prices increased very recently. Nobody has increased the fares yet. But most likely we will increase them by April,” he said. “It is a very tough position for us. We cannot easily increase the fares, but we cannot afford not to do so either. A 5% increase is roughly around Rs. 500 per child. But for certain families, even that is a significant amount and will heavily affect their monthly budget.”

He added that several parents had delayed paying such fees due to financial struggles, with some families having been unable to pay even the current amount for several months. “I cannot send the children away because they need to go to school and learn. Both parents and we are suffering in this situation,” he said.

Meanwhile, Lanka Private Bus Owners’ Association (LPBOA) President Gemunu Wijeratne said that although diesel prices had increased, existing policies regarding fares prevented them from raising bus fares immediately. 

Wijeratne told The Sunday Morning that bus fare revisions were regulated by a price formula that had been in place for around 24 years. According to him, cost calculations treat the specific impact – in this case the increase in diesel – as one-third of the total, meaning that the given percentage should be divided by three to determine the actual effect on the overall cost.

“We have not increased bus fares yet, but we have requested some changes to our policies regarding this. We can only increase bus fares when the overall cost reaches 4%,” Wijeratne explained.

However, several private bus owners claimed that their daily operations were under financial pressure due to increased diesel costs. W.A. Ajith Sanjeewa, a private bus owner operating five buses on the Ingiriya-Maharagama and Ingiriya-Horana routes, said operators felt the impact of rising fuel prices directly, as the losses were deducted from their earnings.

He said that a bus operating on the Ingiriya-Maharagama route typically earned around Rs. 40,000-45,000 per day from three rotations. Approximately 75 litres of diesel are required daily, per bus, to complete these journeys, costing around Rs. 22,000.

“With the recent diesel price increase, our daily fuel cost has also increased by roughly Rs. 2,000, especially due to fuel consumption in traffic,” he explained, noting that a significant portion of daily earnings was allocated for other operational costs. 

Bus drivers and conductors are paid 10% each of the total income of the day. Sanjeewa added that despite the increasing cost of living due to fuel price hikes, drivers’ and conductors’ pay remained the same, with a 10% share of the daily income. “After covering all the expenses, as the bus owner I only get around Rs. 9,000 per day. But now with the diesel price increase, the additional fuel cost is deducted directly from the owner’s share,” he said.

Parental concerns

Shanika Mathara Arachchi, a 31-year-old mother of a child attending an international school, said that even a slight increase in school transport service fares could place significant financial pressure on families. She noted that she currently paid Rs. 6,500 for her daughter’s school van service, adding that an increase would raise it to Rs. 7,000.

“Mentally, even the change in the number itself feels like pressure,” she said, adding that the upcoming April season typically brought higher living expenses. She also pointed out that parents still had to pay the full school van fee even during the April holidays when students stayed at home for about a week, whereas only half the monthly fee was charged during long holidays such as in August.

She further noted that rising fuel prices eventually led to increases in many other expenses, making it difficult for parents to manage their children’s needs, particularly education. “Education costs are already significantly higher for families with children in international schools, with school fees, additional school activities, and tuition classes. If school transport fares also increase, it becomes a huge financial burden,” she said.

She added that some school transport providers tended to round off fare increases, meaning a parent could end up spending Rs. 1,000 or more on top of the usual fee. If the situation continues, she opined that some parents may consider allowing older students to use public transport instead of school vans or buses in order to manage household expenses.

Impact on three-wheeler fares

The Sunday Morning also spoke to several three-wheeler drivers, including those using meters and those operating through ride-hailing applications such as PickMe and Uber.

Tishan, a driver from Kandy who uses a ride-hailing application, noted that the application had increased fares slightly to account for the fuel price hike. However, an older three-wheeler driver, who wished to remain anonymous, and who uses a meter to calculate fares, said prices had not yet been increased. “I go by the normal prices at present. If this continues for longer, then I will have to increase prices,” he said.

Another driver, Pradeep, also expressed the need for a fare increase, noting that drivers were still operating at the usual rates as no official increase had been declared. “No one has said anything, so the same prices are still being used,” he said.

From another perspective, Jagath Karunasena, a driver from Kaduwela, said that if fares were increased, the adjustment would likely be around Rs. 25. However, he added that such an increase was not necessary at the moment, adding that he continued to operate at the usual rates.

Increase in commodity prices

National Consumer Front (NCF) President Asela Sampath warned that rising fuel costs would inevitably lead to increases in the prices of essential goods and groceries. Speaking on the impact of fuel price revisions, he said that rising transportation costs, including container transport, would ultimately result in higher commodity prices.

Sampath criticised the Government for increasing fuel prices while maintaining reserves. “When the Government hoards fuel in reserves and increases fuel prices, importers tend to raise the prices of the goods in their storage,” he said.

He further noted that certain essential commodities had already experienced price increases even before the fuel price revision. “Items such as big onions and sugar have increased by around Rs. 20 to Rs. 50 in the market,” he said, adding that goods imported about a month ago were now being sold at higher prices. “Big onions that were sold for Rs. 140-150 per kg are now being sold for around Rs. 220. Dhal is sold at around Rs. 280 and sugar at prices exceeding Rs. 240,” he said.

He also warned of potential issues related to Liquefied Petroleum Gas (LPG), suggesting the introduction of a QR code system for gas cylinder distribution. “If not, the Government will not be able to control a possible gas shortage,” he said.

Sampath added that prices of daily consumer goods could rise further during the upcoming festive season in April due to a lack of effective price control mechanisms. “The prices of essential commodities used in daily consumption, such as potatoes, dhal, and big onions, are likely to increase further,” he said.