KINGSTON, Jamaica— While there is no immediate reprieve from rising fuel prices that are driving up transportation and other costs, the Minister of Information Robert Morgan has said that the issue of taxation on commodities, including fuel, “is a conversation that we [the Government] are going to have to have with the Ministry of Finance”.

Morgan made the comment at Wednesday morning’s post-Cabinet media briefing at Jamaica House as he responded to a question about whether the administration will yield to growing calls to remove the gas tax that is driving up prices at the pumps and elsewhere.

“Is there anything that the government can do to cushion the effects of these on consumers?” Morgan was asked.

Responding, the minister said: “…One of the biggest concerns, primarily of the Prime Minister and members of the Cabinet as well as the Ministry of Finance, is the rising prices within the world which is contributing to rising prices in Jamaica”.

Morgan noted that the price of oil is now roughly US$90 per barrel whereas it was below US$60 per barrel a few months ago.

“So there are many factors operating on the local economy and causing inflation to drive. We’re an island; we do not produce hydrocarbons, so we have to import hydrocarbons. The global trade system has been disrupted and there are other associated costs and speculation within the global markets that has led to an increase in prices generally and also an increase in oil prices,” Morgan continued.

He argued that there are several revenue measures associated with petroleum so “there’s no homogenous gas tax on petroleum”.

However, he noted that the ministry of finance is where tax policy is executed and said that is where the conversation will have to take place.

“The Minister of Finance is probably the most competent person to pronounce on government tax policy,” he stated.

In the meantime, Morgan said “What I want to offer this morning is for the public to be aware that the government is acutely concerned about the increasing prices globally, which is having an impact on prices locally.

“If you would have looked over the last couple weeks you would have seen the prime minister and the minister of finance and the minister of agriculture raising concerns about things such as the rising chicken prices, about the rising bank fees and also the impact that floods have had on our farmers which also may lead to increases in prices at the local market.

“It is something that in the corridors of government and at the highest level, led by the prime minister, it is being discussed and there are constant discussions about what to do to assist local consumers to deal with what is to some extent an unprecedented period in our global markets that is impacting them”.

The Opposition spokesman on Energy, Phillip Paulwell, public transport operators and other stakeholders have been upping the pressure on the government to remove some of the taxes on petroleum products, including a hedge fund that is no longer used for the purpose that it was intended.