Price of gas will go up tomorrow in line with WIOC increase, but no reduction in diesel though price has dropped
The prediction of Dr. George Daniel – that the West Indies Oil
Company (WIOC) would be increasing fuel prices shortly – has come
true, despite the Government’s two earlier press releases about its
continued subsidy of prices.
Effective Friday, March 22, the price of gasoline will move from
$13.99 to $14.50 per gallon.
Although it is a slight increase, it will still be impactful for motorists
who operate gas-run vehicles; for small businesses; and, likely, for
residents, in general, as such increases are usually passed on to the
consumer.
WIOC has reported a 7 percent increase in the cost of gasoline and a
2 percent decline in the cost of diesel.
This has prompted some residents to ask why the price of diesel has
not been reduced at the pump in the same vein as the increase in gas
– instead of remaining at $14.25 per gallon.
In January and February, the Ministry of Finance announced the
implementation of a refined pass-through mechanism for fuel prices,
which would allow it to meet its 2024 target for consumption-tax
revenue.
It would also allow the Government to support vulnerable segments
of the population while maintaining some level of revenue
assurance, the releases said.
At the time, Dr. Daniel – the United Progressive Party’s
spokesperson on energy – had pointed out that the pass-through
mechanism employed by successive administrations was decades
old, and the press statements were saying nothing new.
In fact, the prices quoted in the releases were the same they had
been for some time.
But Dr. Daniel noted, too, that when international oil prices had
fallen, the mechanism had not worked to the benefit of local
consumers, since there had been no equal reduction at the pump.
Therefore, he said, the Browne Administration had “made a killing”
on consumption from fuel, which amounted to about 200 percent in
tax from gasoline and diesel.
Accordingly, the former lecturer believed the press releases were
merely testing the waters to gauge public reaction before the
Government actually increased the prices on fuel and LPG products.
To justify its increase in the price of gasoline, the Government says
“the average regional prices for gasoline and diesel are currently
$15.45 and $15.91, respectively, while the regional average for the
20-pound and 100-pound cylinder of LPG is $38.28 and $202.15,
respectively.”
But this cuts no ice with many residents, one of whom tells REAL
News that “these other islands enjoy services that Antigua and
Barbuda don’t get, and their cost of food is lower.”
In the meantime, the margins for WIOC, inland transport, and gas
station dealers remain unchanged, this latest press release says.
Additionally, households, restaurants and cook shops will not see
any increase in the price of Liquid Propane Gas (LPG), as the 20-
pound bottle remains at $32 per bottle; the 25-pound bottle at $40;
and the 100-pound cylinder at $155.
In order to support affordability, the Government says, it will
continue to provide subsidies for these LPG products at a rate of
$5.16, $6.45, and $17.64, respectively.
