CABINET NOTES: The Cabinet held a discussion on the rise in gasoline and diesel prices that have resulted from a global increase in the per-barrel cost of petroleum, as a consequence of the war in Europe.
The price pass-through mechanism that determines the cost of these two items at the pump was repeated for the Members’ and the public’s benefit.
Every three weeks a shipment of <3 million gallons of fuel is purchased by SOL and stored at WIOC. Portions are then sold to WIOC at a markup price.WIOC in turn sells its purchases to distributors at an additional markup.
The distributors in turn add an amount to account for their costs and profits, and the retailers are compelled to add the Government consumption tax. This price pass-through mechanism determines the end cost (as all these amounts are added) when it gets to the consumer.
The Government tax is intended to provide a yield of no less than $2.5 million dollars monthly. Whenever the purchase cost to SOL rises, the Gaston Browne Administration deliberately retains the retail price, thereby collecting less; whenever the cost to SOL decreases the Government consumption tax revenue rises.
This mechanism provides stability to the cost of gasoline to automobile owners, trucks and buses, to fisherfolk and others who utilize gasoline to run generators and the like.
It reflects skillful management of inflationary pressures which are significantly reduced by not passing on every increase to petroleum consumers.
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This provides some useful information, but explains nothing.
If you had 6 months stock I storage .. there’s no way prices should have sky rocketed so fast .. antigua people dunce ??? Or ministers just want the money to put in their pockets ??
The monies are going into NYAMCO. That Cesspool is supposedly owned by the People of Antigua and Barbuda. Has anyone ever seen a Financial Report from that People Owned Establishment,NYAMCO. I am fully aware that Ministers of Cabinet are on that Board of NYAMCO.Is that allowed,and if so. WHY? Are they getting paid to be on that Board of NYAMCO and still be Substantive Ministers? Is Maria Browne,Minister of Housing and Lands,still on the Board of West Indies Oil? Tenman/Sidelines and all of you Gastonites,looking for answers.
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