Symmonds: Fuel prices expected before Russian invasion of Ukraine

Fuel price increases have been on the horizon for over two months despite the first shots in Russia’s invasion of Ukraine occurring mere days ago, said the Minister of Energy and Business Development Kerrie Symmonds.

As the price of gasoline soared well above $4.00 per litre on Monday, the business community and ordinary citizens expressed concern about the implications for specific industries, but also on the cost of living as a whole.

No petroleum-based product was spared, as gas went up 14 cents to $4.13, diesel rose by 17 cents to $3.46, and kerosene rose by 22 cents to $1.80.

President of the Barbados Chamber of Commerce and Industry (BCCI) Anthony Branker took to the airwaves calling for a meeting between the private sector and the Government.

He noted that any ease in the way of taxation would require a “delicate balance” on the part of the Government, but said the fallout for businesses could be particularly serious if tensions between Russia and Ukraine persist for an extended period.

Taxi operators also warned that without the reduction or removal of road tax in the face of surging gas prices, increases would have to be passed on to consumers.

“All I can say is that the Government will continue to closely monitor the price movements in the energy sector and we are at present assessing all of the options that are at our disposal with a view to determining what sort of intervention is most appropriate,” Symmonds told Barbados TODAY.

When asked about the requests from taxi operators and/or Government’s election promise of reduced freight prices to stabilize the cost of living, the Energy Minister stressed that tax/revenue policy is the domain of the Ministry of Finance.

If the Russian invasion of Ukraine over a week ago was not enough to destabilise the global economy, western leaders are now threatening to ban the importation of Russian oil.

Since then, the price of American crude oil increased by nine per cent with Brent crude soaring to nearly $140 a barrel before dropping to $123. But experts fear that oil prices could reach $200 a barrel if the conflict deteriorates.

When asked to respond to criticism about the seemingly short timeframe between the start of the conflict and the gas price hikes, Symmonds cited a Christmas Eve article warning of economic instability over the bolstering of Russian forces on the Ukrainian border.

“Over the [Christmas] period, the UK and the USA both indicated that they were not prepared to tolerate an invasion of Ukraine. Again petroleum prices surged….that was over two months ago,” Symmonds contended.

“The first shots may have been fired a week ago but the geo-political economic context was being set months ago,” he added. kareemsmith@barbadostoday.bb