Raphael John-Lall
The increase of the price of super gasoline prices could have “disastrous effects” on the economy over the long term, former Trade Minister Vasant Bharath warned yesterday.
“There is likely to be a huge knock on effect with regard to the use of super and the number of people being negatively affected by the increase of the $1,” he said yesterday when he appeared on CNC3’s pre-budget debate show.
He told reporter Urvashi Tiwari-Roopnarine although the price of diesel was not increased, based on his discussions with members of the public, there are many persons who use super gasoline to transport people and goods.
“This will be consequential. I expect to see a knock on effect with regard to costs,” he said.
Bharath said less fortunate citizens who are least able to afford it will be the ones to feel the brunt of the Government’s reforms.
“As human beings our natural tendency is to protect what we have. I assure you that where the taxi drivers see an opportunity to increase prices, it will be blamed in many instances directly on the fuel subsidy.
“We have no real consistent alternative in terms of public transportation as the consumer is left with very little choice. That is why the decision the Government is making today could have disastrous long term effects on the economy,” he said.
The former minister predicted a domino effect from the increase in the price of super gasoline which could be reflected in the price of popular consumer goods and food items, including doubles.
He asked: “How does the doubles get to where it is? It is transported.”
Bharath said the Opposition’s response to the budget is “extremely important” as the country must be made aware of why foreign investors may not want to invest in the country, or what the ratings agencies are saying.
“Whether we like it or not, as a people as a country, we are not only connected with the rest of the world but we also compete with the rest of the world. The budget in the last three years have done nothing to address those fears,” he said