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Fuel Hike Hits Hard

Fuel Hike Hits Hard

11 Mar 2026 | BY Buddhika Samaraweera and Dhanushka Dharmapriya


  • Consumers claim hike ‘illegal, exploitative’
  • NTC rules out bus fare revision 
  • Private bus owners give week’s ultimatum 
  • School van fees upped by 5%
  • Tea smallholders in dire straits 

Following the Government’s decision to increase fuel prices across all categories with effect from Monday (9), several consumer groups and industry representatives yesterday (10) warned of a cascading impact on transport costs, essential goods and household expenses, with some demanding urgent policy revisions and others announcing immediate fee hikes.

The upward revision, introduced amid rising global oil prices and similar increases in a number of countries, has drawn sharp criticism from consumer advocates who claim the burden is once again being shifted onto the public.

When contacted by The Daily Morning, National Consumer Front Chairperson Asela Sampath alleged the increase was “illegal” and claimed the Government had failed to adhere to the existing pricing formula.

“The Government claims that the Treasury currently has strong financial reserves, but such funds are being generated through measures that place an unfair burden on consumers. This is the latest example,” he said. “If the Government acts in this manner, importers and traders will also raise the prices of essential commodities. This amounts to the Government exploiting consumers and allowing the private sector to do the same.”

The transport sector also raised regulatory concerns in the wake of the price hike.

Lanka Private Bus Owners' Association President Gemunu Wijeratne told The Daily Morning that they have given the Government one week to address their concerns, including revising the nearly 24-year-old formula used to determine bus fares.

“The Government should revise the outdated formula to reflect current economic realities. Although we can launch trade union action such as a strike, we do not intend to do that now. Our intention is to resolve the matter within policy frameworks,” he said.

However, the National Transport Commission announced that bus fares will not be revised despite the increase in diesel prices.

NTC Director General Dr. Nilan Miranda confirmed that although diesel prices were increased with effect from Monday midnight (9), the increase does not warrant a revision of bus fares. Accordingly, the current fare structure will remain in effect.

Three-wheeler operators echoed similar concerns, pointing to the absence of a formal mechanism to revise fares in line with fluctuating petrol prices.

All Ceylon Three Wheeler Drivers' Union President Lalith Dharmasekara said that operators face difficulties as there is no structured system to adjust charges.

“Even if petrol prices rise sharply or fall drastically, we do not have a proper mechanism to revise our charges,” he said, urging the National Transport Commission to appoint a price revision committee to regulate maximum charges for three-wheelers, school vans, office transport services and taxis.

Meanwhile, the All Ceylon School Children’s Transport Association announced a 5 per cent increase in school transport fees with effect from yesterday, citing the Rs. 22 per litre increase in Auto Diesel.

Association President Lalith Chandrasiri Fernando said that the decision was taken after consultations, noting that a monthly fee of Rs. 10,000 would increase by Rs. 500.

Elsewhere, the All Ceylon Bakery Owners' Association stated that there are no immediate plans to increase bakery product prices, although future revisions remain possible if operating costs continue to rise.

The National Tea Planters’ Association also warned that smallholder tea growers are facing mounting difficulties due to higher transport costs, particularly in remote plantation areas where produce must be transported by lorries and trucks.

With consumer groups warning of further price increases in essential goods and several sectors seeking regulatory intervention, the latest fuel hike appears set to intensify cost-of-living pressures across the country.



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