Petrol dealers’ hands tied

Government holds the power to grant consumers an ease at the gas pump.

That is the view of president of the Petrol Dealers Association of Barbados (PDAB) Aldo Ho-Kong-King, who told Barbados TODAY taxes were to blame for the high cost of fuel.

In fact, Ho-Kong-King said even though motorists were having to spend more money on fuel, gas station owners were barely surviving on the small margins of profits.

Yesterday, while speaking on VOB’s Down to Brass Tacks, Minister of Energy, Small Business and Entrepreneurship, Kerrie Symmonds, revealed that Government was looking at ways to reduce the high cost of fuel on the island.

Symmonds said talks were currently ongoing with the Social Partnership in an attempt to reduce the excise tax on fuel.

He explained that within the last six months fuel had risen by 70 per cent and the addition of taxes such as VAT at 17.5 per cent, excise tax at 99.3 cents per litre and the fuel tax at 40 cents per litre, had led to increased prices for motorists.

He also suggested that both Sol and Rubis, the two major fuel marketers on the island, could assist in the effort to reduce the price of fuel.

Additionally, Symmonds said Government was exploring the option of purchasing a larger supply of fuel, more than is currently done, and storing the island’s reserve fuel in Trinidad, where they currently have the capacity and infrastructure required to keep it stored safely.

Currently, Barbados is one of the most expensive places in the world to purchase fuel.

While gasoline in Barbados is sold at $3.98 per litre, other islands in the Caribbean retail it at much lower costs. Trinidad and Tobago retails gas at $1.70 per litre; Dominica at $1.86, Guyana $1.96 and St Lucia at $2.29.

Speaking to Barbados TODAY, Ho-Kong-King said the hands of gas station owners were tied.

He said if Government reduced taxes on fuel then and only then would relief be felt at the pump.

“The major cost of fuel is taxes so I would guess it would fall on Government. The margin that retailers make on the price of fuel is very small. So I would imagine that it would be at Government’s end to do so,” Ho-Kong-King said.

“As it is we are barely making ends meet and some are not making ends meet at the current margin.”

When asked what he believed needed to be done to address the issue Ho-Kong-King said: “I can’t comment on that. I am not involved at the Government side of it.”
(randybennett@barbadostoday.bb)