Source: Real News Antigua- Former university lecturer Dr. George Daniel says he is not impressed with a press statement, issued by the Ministry of Finance, about the Government’s continued subsidy of fuel and related products.
On Wednesday afternoon, February 14, the Ministry announced the implementation of a “refined pass-through mechanism” for fuel price, which is meant to ensure the Government meets its 2024 target for consumption-tax revenue.
The Browne Administration brands this a “strategic initiative to strengthen fiscal resilience” and to ensure increased transparency and predictability when international oil prices change.
Recently, the West Indies Oil Company (WIOC) announced price increases; but the Government has opted to maintain the retail prices at the pump, the release said.
“The pricing structure for gasoline and diesel, along with the margins for WIOC, inland transport, and gas station dealers, will remain unchanged,” the statement says.
Hence, effective Thursday, February 15, the price for gasoline is $13.99 per gallon while diesel is $14.25 per gallon.
The 20-pound LPG remains at $32 per bottle; the 25-pound LPG at $40 per bottle; and the 100-pound LPG at $155 per cylinder.
According to the Government, in order to support consumers, it will continue to provide subsidies of $5.16 and $6.45 per bottle and $17.64 per cylinder, respectively.
However, Dr. Daniel points out that the prices quoted have been in place for some time now.
Further, he says, the Administration is simply continuing the practice that has been in place for decades: That is, when prices on the world market go up, the Government would provide subsidies to cushion the consumer from the full effect.
The former lecturer believes that – with this press release – the Browne Administration is testing the waters to gauge the public’s reaction before it actually increases the prices of fuel and LPG
products.
Because, he says, the Browne Administration is looking to wring revenues from whatever sources it can.
The question persons should be asking is “by how much” prices will go up when the time comes, Dr. Daniel says.
At that time, he adds, he is confident that the hikes will be blamed on the pass-through mechanism – which, ironically, the Administration failed to implement when oil prices were going down.
Dr. Daniel reminds consumers that when fuel prices dropped during the COVID-19 pandemic, the Government made a killing on consumption tax – amounting to about 200 percent in taxes from gasoline and diesel – while the people did not benefit.
He is expecting that when the next shipment of fuel arrives in Antigua and Barbuda, there could be another announcement of an increase in fuel prices.
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Many thanks Dr George Daniel for your clarification, and calling out the ABLP’S double-speak on fiscal and financial matters regarding their persistent fuel gouging practices.
More increases by the backdoor … again!
It wouldn’t be too bad if we could witness the benefits to the country.
ABLP SICKEN MI ‘TOMACH!
Yes George there were times government was able to get back revenue lost from providing subsidies. However the reverse is also true. Why simply close your eyes to the whole picture? Amazing to me that persons cry about government inability to make certain payments and provide services, yet when they put themself in a position to get the resources necessary, there is some idiot claiming they should not (currently some 800 million yearly in revenue, about 600 million goes to payroll and pension, most of the rest goes to pay interest on debt). George simply prefers the government to cripple itself so that his side can get in office
Talking about ABLP’S financial misappropriation @ tenman (and in your own words “government inability to make certain payments …”), what’s your take on the six-and-a-half years delay by Gaston Browne in releasing the $1 million donation to Barbuda for Hurricane Irma?
Here’s a reminder from the person behind the gift:
https://youtu.be/FCzSQVWLP_Qsi=VtUrSs2RLIyqqNPS
I’ve yet to hear any of you Gastonites or ABLP acolytes respond to this serious financial mismanagement.
Looking forward to hearing from you in due course you UNPATRIOTIC and MYOPIC CRETINOUS fool …
Some say the $1,000,000.00 could be justified for repairs of Barrymore hotel before and after the Barbudans came and went….. the viv richards stadium that was left in disrepair after the barbudsns left…
Some wondered who paid for all the Kentucky chicken ….did the donor specify exactly where he wanted his money to be spent…Antiguans weren’t that lucky after hugo…Louis and lenny…we had to fork out and add whatever some of us who had insurance….some haven’t rebuilt since Hugo…
But that’s is not the point….THE MAN WANTS HIS MONEY 💰 BACK.
Brix.. did you not hear the interview where the donor made clear his or his agent’s signature was needed in order to remove the moneys (he or his agent is a signature to the account)? You did not hear him state the moneys are still in the GBC account? This was an interview done by the fake journalist Nikkie Phonenix. No doubt you should be able to find it on youtube. With those facts stated, tell me again how the moneys were misappropriated by GB or his admin? Last, I heard PM has made clear that even though government is yet to get the funds, they will still turn it over for what its intended for
Calling an investigative journalist “fake” is a new one to me.
Surely, you aren’t upset with Nikki Phoenix, because she’s asking the TOUGH questions that we Antiguans want to know, by doing the job she is trained to do?
Next you’ll be saying that Gaston Browne is a “fake” Prime Minister … oh wait! 😁
As always, tenman and his cohorts turning a blind eye to this government’s erroneous financial behaviour, and hating on the critical thinkers that’s calling them out!
PUT YOUR COUNTRY FOLKS FIRST FOR ONCE IN YOUR USELESS LIFE …
@Tenman.
This sorry tale beggars belief. How do you honestly feel when a man of such generosity or anyone for that matter, donates such a sum for the relief of the people of Barbuda and has his correspondence consistently ignored by the Prime Minister? This shows an appalling lack.of good manners to the donor but reflects poorly on government itself. Non acceptance of letters and emails by government officials is nothing new in Antigua, it seems ingrained. The saying goes: You can take the man out of the country but you cannot take the country out of the man. Mr Morgan’s experience is proof positive of that. Other aspects like setting up an account in GBC in which to deposit the fund have a whiff of stench about it. Six years for the people of Barbuda to receive what is rightfully theirs is nothing short of disgraceful and shows either incompetence or vindictiveness on the part of government. Antigua is not a third world country, it is a political joke among nations and qualities arguably as fourth world. What a shame Antigua and Barbuda has slipped down the ladder so quickly.
qualifies not qualities
@oversee its telling that you heard him regarding the letter but ignore the part where he made clear his opinion that the moneys were stuck at GBC. In essence he confirmed the government never received the funds. He also made clear he or his agent are signatories on that GBC account
@Tenman.
It is claimed GBC is a shaky bank. Would anyone in their right state of mind set up an account to deposit funds in such a bank? Surely there must have been an alternative bank onshore, to facilitate this transaction. The monies were stuck in GBC for six years, think about it, why and how come? You might have the answer. Since the fund was/is intended for the benefit of the people of Barbuda, what has Gaston Browne’s government done for the bank to release the fund? This stinks to the skies and no amount of twisting and turning can alter that fact. Add to that misery the fact of unanswered mail; what excuse is there for that? Sometimes I wonder whether the Prime Minister thinks these behaviours go unnoticed by the outside world; you can whisper in his ear that they do not. Is it any wonder that Antigua and Barbuda has now been sold down the river to China, Gaston Browne’s haven of last resort! Six whole years and seemingly little or no effort to resolve the problem. Do you think Mr Morgan is best pleased? Consult the interview again and see. Keep in mind that businessmen such as Mr Morgan can carry weight in high places; an unfavourable here or there to the powerful can have negative consequence. Word gets around at the speed of light in this high tech age and countries with their hand on the levers of power can exact punishment at their whim. Does WTO come to mind?
@Tenman.
What is telling is the matter of unanswered mail. What say you? And more telling is that GBC was the chosen bank, one that was/is considered shaky so why chose it? Smells of rotting fish to me. Any government worth its salt would not have allowed this sore to fester for so long unless it has an ulterior motive to do so. Incompetence is the order of the day, it is routine and all’s well that does not end well in Antigua and Barbuda.
When the ABST was introduced in 2007 a number of taxes were repealed among them was the Consumption Tax. It is not only illegal but highly criminal for the country’s highest law making body THE PARLIAMENT to repeal a tax and the government then entered into a bilateral agreement with WIOC to continue imposed this repealed tax on the populace of Antigua and Barbuda. When asked about this the Finance minister replied “I met it so” , implying that the former administration who repealed it continued to tax the people. On the other hand he was quick to put an end to the ABST concession that the Sandals group was enjoying stating that it was illegal.
THIS IS WHAT HAPPENS WHEN YOU HAVE A NON-READING PUBLIC….IN THEIR IGNORANCE THEY ARE ALWAYS TAKEN ADVANTAGE OF. ALL DEM GOOD FOR IS RUSH FOR HAM AND TURKEY AT XMAS TIME
While leaving one of houses of worship to the next, this morning, I had a read of this article. What I found flawed in this exercise is the mentioning of a 200% profit margin in taxes on gas and diesel, omitting the fact the government paid all salaries during the lockdown, with little work done.
It is disingenuous to suggest that the cabinet is testing the waters to eventually increase fuel prices when he is fully aware that inflation is inevitable as time progresses…
Inflation is a matter of time, as we can see from history. So to imitate this analysis as though it’s a novel idea shows a level of mischief in his intellectual capacity to bolster the approval in some quarters.
Governments have the responsibility for managing the affairs of the country which the tax payers will always incur.
With paid increases, we will adjust just as the other islands have…
What you might think as a “flawed” article @ Dave Ray; however, the enlightened amongst us Antiguans LIVING HERE, will find it impeccable … just saying 😉
Yes, I agree with you. Anything written against the current administration will always be considered “impeccable” in the eyes of the naysayers. There is no objectivity on these blogs. That’s the reason no one uses his or her given name. The reason for that is that many are directly benefitting from the government’s policies at present. Trust me, I know.
I’d rather be an enlightened critical thinker, than support a Prime Minister that holds on to a $1 million dollars relief fund for the benefit of Barbudan’s for over 6 years, and continues with a lack of clarity on other financial matters like, CIP, NAMCO and YIDA.
Over to you Dave, in 3, 2, 1 … thought not!
This report came from the mind of one who knows by virtue of his experience. There is no ambiguity or conjecture here. Alas, the Labourites or Gastonites will cry foul at anything that exposes the incompetence, corruption and scourge that this Gaston Browne led administration has inflicted upon this country.
This is a cash-strapped government, and instead of collecting the outstanding monies from their friends and cronies, they burden the poor.
Was GBC in receivership in 2017? Come on Tinman, if you believe that cocamame story that Gaston Browne let off, then you’re as dense as I knew you were. And how come the FSRC is so silent? Our country abounds with traitors, flip-floppers, Judas’ and a plethora of corrupt, compromised individuals, motivated by GREED. It’s the real reason this government still stands….barely.
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