Fuel price hike common factor to strengthen domestic economy: PMD
The Presidential Media Unit says that the fuel price hike is one of many key factors in strengthening the local economy.
A statement issued by the Presidential Media Unit says that the Cost of Living Committee chaired by the Prime Minister and several other Ministers cites that the decision was reached after considering several key factors.
One of the main reasons for this is the continuous rise in crude oil prices in the world market over the past few months. At present, the price of a barrel of crude oil is over U.S. $ 70, and market trends indicate that it will continue to rise, the PMD says.
The Presidential Media Unit also says that the country's economy needs to transform from an import-dependent pattern of consumption to a pattern of production-dependant consumption.
Fuel consumption for private and public transport should be reduced by about 60%, the statement reads. Therefore, electric vehicles, as well as trains, should be converted to electrics as much as possible. Transport costs can also be stabilized by stopping the import of fuel-powered vehicles altogether and promoting the use of electric vehicles and providing electric engines for three-wheelers, it adds.
"According to the National Development Program towards a Climate-Resistant Green Economy, fertilizers, fuels, forest resources and garbage should be managed in a manner that enhances the quality of life of the people.
Therefore, in addition to increasing prices, the Government decided to take steps to implement a number of proposals to change the pattern of consumption based on imported fuels." The statement mentions.