Opposition Spokesman on Energy, Phillip Paulwell says he’s concerned about the announcement by PetroJam of the record-breaking increases on petroleum products a day before Emancipation Day.
He says the increase is unprecedented and is once again insisting that the government removes the Hedge levy to ease the pressure on motorists.
Three years ago, the then PNP administration instituted a special consumption tax on petrol to fund a hedging arrangement to guard against what was expected to be a sharp rise in world oil prices.
However, oil prices at the time never rose to a level where the hedge could be utilized.
The current administration didn’t continue the arrangement, however, the SCT was never rolled back.
The government instead increased the SCT as part of a raft of measures to fund the one-point-five million dollar tax threshold increase.
Yesterday Petrojam announced that gas prices will increase by $2.65 cents per litre to sell at $137.51 cents for a litre of 87.
A litre of 90 will also sell at $140.35 cents per litre.
Mr Paullwell says in the current environment there is no need for the government to collect the Hedge levy because it has long abandoned the hedge protection against oil price increases.
He says it’s in the government’s hands to remove the levy and spare the public the burden of the increases being announced by PetroJam on a weekly basis.
Mr. Paullwell argues that the government has been short-sighted in its approach to global issues and the movement of oil in the sector and has exposed the country to the unexpected shocks of increasing oil prices.
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