Government is monitoring the complete removal of the fuel subsidy very carefully since going to market-driven prices—which change almost daily in the US— can cause “great aggravation” to the public, Energy Minister Franklin Khan has said.
He made the point in the Senate on Tuesday even as French citizens riot over an increase in fuel prices, forcing the government there to reverse its decision.
The Minister comments were in stark contrast to that of Finance Minister Colm Imbert who joked at IMF conference in 2016, saying: “I increased the price of fuel by 15 per cent and then realised that was not enough. I came back again in April and raised it by another 15 per cent and I came back again just a few weeks ago and raised it by another 15 per cent. They haven’t rioted yet.”
Imbert later apologised for his offensive statement in Parliament. The subsidy on diesel and super fuel was decreased again in this year’s budget, pushing up the price at the pump.
It resulted in the hike of taxi fares and increased the cost of living for citizens.
Khan noted yesterday that while Government said in the last Budget that it intended to phase out the subsidy, it would be phased out. While the intent remains the same, he noted there are “consequences” to this, of which Government is very cognisant.
“We have ultimately to go to a market-driven price where prices are posted every month, like Jamaica. In the US, the prices also virtually change daily at the service station. With fluctuating oil prices, that’s a cumbersome system to manage and can cause great aggravation to the public, when you get up every month expecting to see an increase in prices.
“Conversely, there could also be a dip in prices—it’s a difficult situation we’re in.”
“We’ve removed most of the subsidy, but with a US$65 oil price forecast, the subsidy’s gone back up and we’re monitoring the situation, very, very closely.”
OWTU: Apologise to temporary Petrotrin workers
Meanwhile, the OWTU blazed “fire” yesterday on Khan for his explanations in Parliament last Friday about temporary workers receiving gratuity at the end of every working cycle and that Petrotrin had no obligation, to such workers.
OWTU stated,”What actually happened in Petrotrin is that all temporary workers only receive a gratuity payment when they worked for a period of twelve weeks or more. To avoid paying this gratuity, the company engaged in rotating temporary employees to ensure they didn’t exceed 11 weeks of consecutive work and as such, almost all temporary employees worked for years without ever receiving a gratuity payment.”
“If the Energy Minister is unaware of this, then an immediate apology is required and the plight of all temporary workers must immediately be addressed.”
OWTU also condemned Khan’s statement that temporary workers can find employment in service companies.
“The same minister worked hard recently spreading propaganda against workers which has now put every Petrotrin worker in a position where companies are rejecting their applications. Government tarnished the workers’ image, the only companies hiring Petrotrin workers are the same contractors coming to replace Petrotrin workers and at rates that are less than half of what they earned before,” a statement said.