Price hikes galore as consumers fret

• Wheat flour, bread, bakery products, milk powder and cement prices jacked up
• Litro marginally reduces price hike announced on Sunday 

The prices of several essential items skyrocketed yesterday as consumers fret over soaring cost of living amidst the pandemic.

Following repeated requests from the relevant companies and importers, the Government on Friday decided to remove price controls imposed on milk powder, LP gas, wheat flour and cement. This was after the Government for nearly a year refused to allow adjustment of prices in tandem with global spikes.

The move yesterday resulted in importers, companies and business associations announcing immediate price hikes, which also came under heavy criticism from the general public, though the Government justified on the grounds that failure will lead to scarcity and financial crisis for manufacturers and importers.

Key wheat flour importers Prima and Serendib Flour Mills too announced a Rs. 10 price hike per kilogram. 

In line with wheat flour and LP gas price revisions, the All Ceylon Bakery Owners’ Association also jacked up the price of a 450 g loaf of bread by Rs. 5 and other bakery items by Rs. 10 with immediate effect.

The Canteen Owners’ Association has also announced an increase in the price of several food items and beverages, in the wake of price hikes in LP gas, wheat flour and milk powder.

Accordingly, the price of rice and curry has been increased by Rs. 10 per packet, while the price of a cup of milk tea has also risen by Rs. 10. 

Meanwhile, the Milk Powder Importers Association announced an increase of Rs. 250 for a kilo of imported milk powder packet. As per the new price revision, a packet of 1 kg milk powder will be sold at Rs. 1,195, whilst a 400 g milk powder packet will be sold at Rs. 480. 

State-run Litro Gas Ltd. meanwhile backtracked slightly on their initial LP gas price hike on Sunday, after coming under heavy criticism from consumers and authorities alike. Accordingly, the new prices are as follows: A 12.5 kg cylinder is now Rs. 2,675 per cylinder (reduced by Rs.75), a 5 kg cylinder is Rs. 1,071 (reduced by Rs. 30), and a 2.5 kg cylinder is Rs. 506 (reduced by Rs. 14).

LAUGFS separately announced its revised prices. Within the Colombo district its 12.5 kg LPG cylinder will cost Rs. 2,840, up by Rs. 984. The 5 kg cylinder has been increased by Rs. 393 to Rs. 1,136. LAUGFS last month attained Consumer Affairs Authority (CAA) approval to increase prices – though below its desired level, it remained more expensive than Litro.

In addition, cement companies too hiked the price of a 50 kg cement bag by Rs. 93. The new price of a 50 kg cement bag is Rs. 1,098.

Separately, the Ceylon Petroleum Corporation (CPC) also called for a price hike, insisting that they could no longer operate while incurring such heavy losses.

Economic experts pointed out that the ad-hoc policy changes had led the country into a severe crisis.

“The cost-of-living will be hardest for the general public, with heavy bills on food and energy. This will also see inflation soaring,” they said.  

On Sunday, President Gotabaya Rajapaksa admitted that his Government was “not delivering,” as shortages persist of food, medicines and other essential items because of a dire foreign exchange squeeze.

“The people may have a sense of displeasure towards me and the government for not delivering as they expected,” Rajapaksa said at the ceremony to mark the 72nd Anniversary of the Army at the Gajaba Regiment Headquarters, Saliyapura, Anuradhapura. 

“I accept that. Not only me, but all Ministers and Members of Parliament should accept it.”