It’s over $6 a gallon to fill up your car

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE cost of fuel at pumps has shot up to over $6 a gallon at two major providers, with Economic Affairs Minister Michael Halkitis saying the situation is “volatile” and out of the government’s control due to international market fluctuations sparked from Russia’s invasion of Ukraine.

With times being tough, Mr Halkitis said motorists need to conserve where possible.

Rubis’ fuel stations are highest among providers at $6.33 per gallon, value added tax inclusive, while Esso’s fuel costs $6.16. Shell’s cost per gallon is $5.50.

 Just last week, Rubis was $5.52 a gallon, Esso was $5.68 and Shell was $5.50.

 “It’s a very volatile situation that’s out of our control,” the minister told The Tribune yesterday when contacted for comment. “The latest spikes have resulted from what happened in Russia with the war in Ukraine and the disruptions in the Russian oil supply and in general the uncertainty that it causes, which causes prices to fluctuate.

 “So, we see prices have gotten as high, I think it’s $130 and down to under $100 (a barrel) and now back over $100. So, it is our hope that things stabilise and some of that uncertainty is removed and we see prices go back to a more normalised level. So, that is something we are watching and we’re actively watching that with the hope that things move to a more normalised position.”

 Asked whether the government was considering cutting the rate of taxation on fuel imports to help keep costs down as some places like Barbados have done, the minister said The Bahamas has a different tax structure.

 “As it pertains to other countries doing things with taxes on fuel you would note that for example in Barbados, they did do a reduction but as a counterpart to that they did things like put in place a COVID levy on individual income tax as well as surcharge on corporate tax and raised some other taxes,” he said. “So, whereas they lowered the tax on fuel, some types of fuel, they actually raised it on other types of fuel. For example, in Barbados they raised it on LNG and in Barbados they instituted a pandemic levy on income tax at a certain level and they implemented an additional corporate tax.

 “So, our position is different in that we don’t have income taxes. We don’t have corporate taxes that would allow us to raise those things and in reality, our taxes come from import duties as we don’t have income tax.”

 Mr Halkitis continued: “The other point I want to make is that the government of The Bahamas gets revenue from taxes and if we don’t get it from taxes we get it from borrowing and as you know we have had a significant run up in debt over the last few years and so we have to be very careful when we talk about affecting our revenue base because if our revenue goes down we have to make up the difference through borrowing.

 “So, in short, we just advise people to conserve as much as they possibly can. We know it’s a difficult time and we are observing the situation and volatility particularly coming out of the war and we are hopeful that that situation normalises and the prices of oil on the international market will go back to more normal levels.

 “From time to time we see these sorts of disruptions and volatility and hopefully this is short lived and we just ask people to bear with the situation and hopefully we move to a more normalised level.”

Earlier this month, Public Works Minister Alfred Sears said the government was concerned about the rise in gasoline prices at the pumps, adding some “extraordinary” measures will have to be considered and taken in response to an expected continued increase in fuel costs.

 Weeks later, nothing has been made public to align with Mr Sears’ position.

I n February Bahamian consumers and businesses were warned to brace for gasoline prices to hit $6 per gallon this month after the Ukraine crisis sent oil prices soaring to seven-year highs.

 In early March The Tribune reported that over a two-week period, motorists in New Providence, especially those who frequent Rubis gas stations, had faced a dramatic price hike. In mid-February, the supplier’s price at the pumps was $5.16 per gallon - below its competitors. By March 2, that price had risen to $5.52.

 While Shell stations did not increase during that time frame, remaining at $5.37, Esso rose by five cents, increasing from $5.19 to $5.24.

 Foreign Affairs Minister Fred Mitchell has predicted a high of $8 per gallon of gas this spring.

Comments

GodSpeed says...

Thank Joe Biden and Democrats!

Posted 28 March 2022, 10:26 a.m. Suggest removal

Sickened says...

Since you're making up stuff why don't you add God, Mickey Mouse and Curly Tailed lizards to that list?

Posted 28 March 2022, 11:22 a.m. Suggest removal

GodSpeed says...

What a creative way to say "I don't understand anything".

Posted 28 March 2022, 11:40 a.m. Suggest removal

Sickened says...

Lol. Thanks for your insight Mr. Trump.

Posted 28 March 2022, 2:25 p.m. Suggest removal

tribanon says...

Word "breach" at start of 4th paragraph of my post above should of course be "breath".

Posted 28 March 2022, 11:47 a.m. Suggest removal

tribanon says...

Another wipe of one of my more insightful posts by The Tribune without a trace. LOL

Posted 28 March 2022, 6:40 p.m. Suggest removal

Proguing says...

Biden's energy transition policy is going according to plan....this is his way of forcing you to get solar panels for your home and to purchase an EV (a bit ironic here as both come from China, but hey that's just a detail right?). Of course poor people cannot afford to do that and will be wiped out, but that is the price to pay for his utopic green future.

Posted 28 March 2022, 11:18 a.m. Suggest removal

tribanon says...

It's even more evil and sinister than that and most Americans have absolutely no clue what's really going on, including all of the indoctrinated WOKE ones who tout their Ivy League university degrees. And that includes the activist likes of Obama.

The entire Green New Deal and New World Order campaign has been designed by globalist billionaires and their puppet globalist bureaucrats who seek to undermine and weaken the U.S.A. while enhancing the value of their own very significant investments in Red China. These idiots believe the world's future lies Red China because its sinister, cruel and evil authoritarian communist regime under Xi Jinping will do whatever it takes to control the world's population and limited supply of resources, including food and water.

And Red China, with the help of these treacherous western globalist oligarchs and their control over elected officials of their own choosing (as opposed to the people's choosing) now expects to dominate the U.S.A. economically and militarily by the year 2050.

Posted 28 March 2022, 12:09 p.m. Suggest removal

tribanon says...

P.S. What's happening in the Ukraine and Russia is an evil contrived distraction of the attention of the American people away from Red China's growing partnership with the select group of billionaire movers and shakers who are behind the continued strengthening of corporate America's relationship with the Chinese Communist Regime and the Xi Jinping's growing influence over the U.S. government, especially its intelligence agencies and the military industrial complex.

Posted 29 March 2022, 11:44 a.m. Suggest removal

TalRussell says...

So, please The Guardian's Comrade Mr. Carmichael, forget Will Smith and the **staged** slap, and inform listeners', how best to now join in the The Revolution discussion and hit by getting jollies off back at your show's content in an unapologetically candid and empowering way just like enjoyed by listeners' tuning-in to the respected but now **silenced** one of our own sister people, Nahaja Black, ― Yes?

Posted 28 March 2022, 1:02 p.m. Suggest removal

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