MANDEVILLE, Manchester — Transport and gasoline stakeholders are calling on the Government to reduce the taxes on petroleum in order to lower the price, amidst continued increases in the cost of fuel.

Last Thursday, motorists saw yet another increase at the pumps with the latest ex-refinery costs from Petrojam showing 87 and 90 octane gasoline being sold for $174.78 and $179.79 per litre, respectively, up by $3.06 each. Automotive diesel fuel was being sold for $174.66 per litre following an increase of $3.06, while ultra-low sulphur diesel was up by $3.06 and was being sold for $180.60 per litre.

On February 4, 2021, Petrojam’s ex-refinery prices for 87 and 90 octane gasoline were $119.72 and $122.55, respectively, per litre, while automotive diesel was being sold for $118.65

Jamaica Gasolene Retailers Association (JGRA) President Dianne Parram, Opposition spokesman on transport and works Mikael Phillips, and two rural taxi association presidents told the Jamaica Observer last week that the Government needs to review the tax on petroleum products.

“They need to remove some of the taxes…We need to look at that ad valorem tax,” said Parram.

“We would love for the Government to take a review of the tax component of that ex-refinery price and see if there is any reduction that can take place. I know it is a tough call, with the losses of different sectors,” she said, but noted that increases in gas prices affect every industry.

“The price of 87 octane went up by $55 and the price for 90 octane went up by $59 over the whole year of 2021. That is no small increase per litre… It is affecting the market, it is driving inflation and it is affecting the consumer,” she said.

There are about 330 petrol and service stations in Jamaica, with approximately 270 dealers being members of the JGRA.

“We are struggling. Remember, there is still work from home, online classes, so the commuting public has reduced, and then on top of that we have been having all these rising prices,” Parram said.

“When you look at the big picture it has an inflationary effect and when you look at the [Bank of Jamaica] they are off their inflation target,” she added.

She said the increase is significant, combined with the reduced hours brought on by restrictions due to the novel coronavirus pandemic.

A gas station proprietor in the Corporate Area, who asked not to be named, said the gas tax is only one aspect of the prices.

“On top of what happens with Petrojam’s price, the marketers have been carrying up the margin to the dealers,” he said, adding that the bulk of the cost of fuel goes to the Government in taxes.

“The gas issue is just one of a greater cost issue when it comes to just the commuting public, but again I would echo that the Government needs to look at the cost of fuel,” he said.

“Remember there was a tax that was put on the fuel to deal with road maintenance. There was a tax put on fuel to deal with hedge funding. There is no longer road maintenance, so the Government is taking that revenue into the coffers of central government. Even with what is going there we are not seeing any improvement in road maintenance itself. There is no hedge fund, yet still Government is still taking in that tax,” he added.

Opposition MP Phillips argued that the increase in fuel prices now being experienced will affect the movement of goods across the country.

“I think that we discount the effect of transportation on the wider economy,” he said, adding that the Government needs to look at cutting wasteful spending.

“I think that the Government needs to look at the cost of fuel now. We have been seeing increases in the last year nearly every week… We see where the former minister of transport has now put the train into action, which is now being subsidised by the Government, moving 20 students on a daily basis and in some instances less,” he said.

“I think the Government needs to look overall on the wastage and those can reduce the cost of what the Government spends, then they can reduce the cost of a lot of what we are bearing as consumers,” added Phillips.

“It is tough on people. It is a rough time and I think that the Government is being insensitive to the plight of the common man out there and the effect that fuel has on the wider society,” he said.

Southern Taxi Association President Charles Powell echoed the cries of his members over the gas prices.

“It is a disaster to the industry. Overall the 15 per cent increase [in fares] that we got is nothing, because of the increase of gas alone,” he said.

The cost of maintaining vehicles, Powell added, is also affected by the fuel price increases.

He also noted that the travelling public has decreased due to the pandemic.

“If it continues like this, in the next six months you can tell the world that a lot of people who are in the transport industry, financial institutions a go tek dem because they can’t afford their mortgage,” he said.

“You can’t maintain the vehicle, because, even look at the road condition that we have to traverse,” he added.

He pointed to two routes in the south-central region which have deplorable roads.

“The road from Junction to Mandeville through Nain is a disaster. If you check the road from Mandeville heading to Alligator Pond, there is no road. It is as if the people dem swap black dog fi monkey,” he said.

Central Manchester Taxi Association President Shirley Johnson said some operators are opting to not renew their road licences due to the increase in gas prices among other costs.

“I had members saying to me, when renewal of [road licences] started on Tuesday, it better dem go run robot,” he said last week.

“What the members are asking is for the Government to take off some of the tax off of the gas, so that when the gas goes up it doesn’t go that high for the members,” he added.