While many people are up in arms at yet another increase in fuel prices, petroleum dealers say people should adjust their budgets, as it was inevitable.
Carpooling and the use of public transportation were among the adjustments Petroleum Dealers Cooperative Society president Derek Joseph hopes to see people making following the presentation of the 2023 Budget yesterday.
Minister of Finance Colm Imbert announced the Government’s immediate increase of Premium and Super gasoline by $1 and diesel by 50 cents. The new prices are $7.75 per litre for Premium gasoline, $6.97 per litre for Super gasoline and $4.41 per litre of diesel.
Imbert said elevated oil and gas prices were responsible for the increase and the Government found it unproductive to spend more than $2 billion subsiding fuel. He said it would be better if the Government spent that money on social grants, education, health, jobs and transportation.
While people told Guardian Media that another increase in the cost of living would raise crime and poverty levels, Joseph believes another fuel price increase was inevitable, saying that the Government had to react to increasing international prices.
Motorists wait in line to fill their gas tanks at the NP gas station at the corner of King Street and Eastern Main Road, Arima, yesterday.
ABRAHAM DIAZ
Joseph said the Government had not increased according to global prices over the years. He said a $1 increase in gas prices was modest compared to price hikes worldwide.
“It now has reached a point where it has affected the subsidy in such a manner that the subsidy is so high that they would have had no choice but to make a decision,” Joseph said.
He said some motorists might now use public transportation instead of driving everywhere to counter the fuel increase. Therefore, he believes the Government should start looking at additional means of improving public transport.
“In the first instance, people might stay home a bit or move around less, but eventually, when they make that financial adjustment, they might spend less on something else.”
Petroleum Dealers Association president Robindranath Naraynsingh felt Imbert took his time to explain the fuel subsidy. He said T&T was a price taker as the world market dictates the fuel costs. Based on the laws of demand and supply and what is happening worldwide, Naraynsingh feels the population should be thankful that it is not as heavy a burden as other countries are experiencing right now.
“He (Imbert) explained what he would do: how he will repair roads and provide medicine for the population. He took his time and spoke of the value chain of the oil and the ex-refinery price and everything. He was at pains to do this,” Naraynsingh said.
Naraysingh added that he hopes people drive less and carpool more and find ways of helping each other facing a common situation.
“We have to treat each other with a little more kindness because we all drive on the roads regardless of who you are, so we have to carpool and try to make things drive less, and it will decrease revenue for dealers, but as a society, we have to be our brother’s keeper,” he said.