Declaring that the price of petroleum products has reached an all-time high, and will have a devastating impact on the local economy, Phillip Paulwell, opposition spokesman for mining and energy is urging the Government to remove the discretionary taxation on petroleum products and bring immediate relief to consumers.

With the latest announcement of the ex-refinery prices by PetroJam, Paulwell said he was concerned about the impact of these increases on goods and services, and their delivery throughout the country.

He said the price movement would also impact all sectors of the economy, particularly the transport sector, which is still undergoing a period of uncertainty and adjustment.

The ex-refinery costs for gasoline 87, gasoline 90 and ultra-low sulphur diesel now sell for $149, $155, and $151 per litre, respectively.

Paulwell further said gasoline dealers are expected to add their mark-ups before the products reach consumers at the pump.

“While petroleum price on the world market is still relatively low, at approximately US$70 per barrel, that price is expected to rise, which may likely lead to a further price movement on the local market,” Paulwelll warned.

He said his greatest concern was the continuing negative impact of the gas price increases on the standard of living of poor and middle-income households who are already devastated by the effects of the COVID-19 pandemic.

“The poor and our middle class can’t bear any more. Many are at the breaking point. It’s time for the Government to listen and respond to the plight of our people,” Paulwell implored.

He suggests that the Government cease its hedge fund tax intake as a first step in bringing relief to consumers,
because it has long abandoned the hedge fund policy, and there is no accrued benefit to consumers.

Said Paulwell: “This five-year deception of collecting hedge fund tax at the pump and not using it for its intended purpose must stop because it adds to the trust deficit of the citizenry in public administration. Plus, one has to be
concerned about its impacts on the price of petroleum to the end-user.”

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The Opposition spokesman said he previously called for the abolition of the practice and proposed that the proceeds of the hedge tax be used to finance solar installations for users under 300 kWh per month, but the Government rejected the suggestion.

Paulwell, in the meantime, is appealing to motorists to shop around for the best prices before making purchases because this practice can result in significant savings in this unpredictable environment.