Measures are being put in place across most sectors by the interim government in a bid to cushion the blow on consumers due to the escalating food and energy prices.

Cabinet has endorsed policies to counter the effects of the increasing price of commodities in the short and medium run or about 6 month period after a submission by the interim Finance Minister Mahendra Chaudhry.

To counter the rising energy prices, a cap on gross profit margins of 7% from 10% on kerosene and outboard premix fuel will be introduced duty concessions will be re-introduced for the importation of vehicles that use LPG.

The fuel rebate for the FEA will also be re-adjusted from 10 cents to 5 cents per liter. These are to be in place for the next 3 months.

In line with the duty reductions on fuel prices, cabinet also agreed that there will be an adjustment of fuel rebate to the fishing industry from 10 cents per liter to 5 cents per litre, which means the industry will pay 4 cents and not the current 8 cents.

Duty concessions will also be made for the import of 40,000 energy saving light bulbs by the FEA and further medium term measures are being considered for the 2009 Budget.


There is also a cabinet directive that government ministries are to cut by 10% their energy and electricity consumption by December 31st using amounts stated in their bills for June this year.

In response to the rising food prices, cabinet endorsed that the Department of Agriculture will re-prioritize its budget in order for efforts to direct at the implementation of the "Plant 5 a day" campaign.

It was also agreed that $2 million will be allocated to the Department of Welfare in order for the assessment of applicants for aid currently on the waiting list.

There will also be a re-assessment of the eligibility criteria and allowances, in line with inflation, paid through the department of Social Welfare and that the 2009 Budget is to address any shortfalls.