Symmonds says Cabinet to give nod to new arrangement

Public service vehicle and taxi operators are in deep discussions with the government about a new arrangement intended to shield them from the spiraling cost of fuel.

However, Minister of Energy and Business Development Kerrie Symmonds, hours after gasoline prices rose 14 cents a litre to $4.13, encouraged private citizens to redouble their efforts to conserve energy by using simple tactics like car-pooling.

With diesel costs rising to $3.45 and kerosene to $2.11 cents, an increase of 14 cents and 31 cents, respectively, the energy minister declared that now was the time for Barbadians to think more seriously about conserving energy.

“I have said in Parliament that I know of circumstances where people leave the home that they live in and there are four or five other people on the same stretch where they live and everybody leaving in their own car. Two cars in every house going from that area down to Bridgetown,” Minister Symmonds lamented.

“Does it make sense to carpool in those circumstances? I think it does. The Minister of Tourism from Saudi Arabia was here in Barbados about six weeks ago. When I had dinner with him, he gave me a very interesting story about the extent to which they are practicing energy conservation in Saudi Arabia. Now if Saudi Arabia, which has the second largest reserve of petroleum products in the world, is prepared to have conversations of that nature, why don’t we as well?” he asked.

The increases were announced on Sunday evening, less than a month after Prime Minister Mia Mottley capped the VAT payable on fuel at 47 cents per litre. According to a statement from the Government Information Service (GIS) the increases were tied to international oil prices.

Transport operators, unlike owners of private vehicles, are required to pay annual road taxes despite the heavy taxation charged at the gas pump.

And since gas prices started to escalate, various stakeholder groups have been agitating for relief from the government. Many are still rebounding from the COVID-19 pandemic where demands for their services fluctuated and restrictions were placed on the number of passengers allowed in a vehicle.

When asked by this newspaper about the inevitable fallout for players in the transport sector, many of whom are bound by fixed rates, Minister Symmonds revealed discussions had taken place between PSV and taxi operators as recently as last week. The discussions are being led by Deputy Prime Minister Santia Bradshaw, who is also responsible for Transport, Works and Water Resources.

“We had a report on the matter given to us on Thursday at Cabinet,” Symmonds disclosed.

“We are in the process of concluding the discussions with the taxis and PSV operators and we will very shortly form a compact between the government and those operators with a view to making sure that there is a commonality of purpose on the way forward.

“I wouldn’t want to speak to the specifics of that compact yet, because that really would be a little bit premature. It has to be finally approved by the Cabinet, but we are working on it actively,” he added.

At a media briefing at Bagnal Point, Pelican Village, St Michael, Minister Symmonds explained that tensions between Russia and Ukraine would continue to cause fluctuations in the global market.

“What the government has attempted to do is to cap the VAT at 47 cents. That obviously has brought a measure of relief immediately, but as things escalated again in the Ukraine, we see market prices again continue to go up,” said Minister Symmonds.

“There are some instances where we have seen a sharp drop in the prices, but one has to wait to see if that stabililzes. One example is that a couple days ago, President(Joe) Biden would have indicated that the U.S was planning to release 180 million barrels of oil. It sounds like a lot, but really and truly it is one per cent of the U.S domestic supply, but the market reacted very favourably to that and prices did go down. As to whether they will stabilize in that region where they are now, I do not know, so we will have to see.

“But as I said from the beginning, this is something that we as a country are going to have to monitor. The Prime Minister is very careful to say these will be held in place for a few months and at the end of that period of time, we will then review with an eye to see what further adjustment might be necessary if any at all,” he added.

In response to some misunderstandings about the impact of the cap on VAT charged at the pump, Symmonds urged Barbadians to revisit the terms and conditions of the March 14 budget speech.
kareemsmith@barbadostoday.bb