By Akil Franklyn on Wednesday, 16 March, 2022 at 07:38 PM

Barbadians received ease at the gas pump during the 2022 Budget Proposal on Monday by Prime Minister Mia Mottley. 

Prime Minister Mottley announced that effective March 16th, 2022, the government will cap the VAT payable on gasoline to 47 cents per litre from the current 61 cents per litre, which will bring gasoline prices from $4.13 per litre back to $3.99 per litre.

Since the introduction of the fuel levy in 2018, Barbados has had one of the highest rates in the Caribbean, and locals have been asking for relief. Currently, Barbados has the highest gas prices in the Caribbean and Central American region followed by Belize at $3.37 and Jamaica and Aruba at $2.92.

Although some Barbadians have expressed relief, some have voiced their concerns about the direction gas prices are generally heading. 

“The VAT cap is a stop-gap measure. It is an initial step, there certainly needs to be a stronger emphasis by the government to reduce the overall cost of fuel which affects the cost of living in this country,” said Carla Alleyne. 

“I don’t know if the government can afford it due to the current financial position they are in, but if there was to be a fuel subsidy, I would not mind,” said Caleb Knight, a taxi driver. 

“When you look at the global market, there is not much that government can do in terms of pricing to prevent us from facing the challenge of a cost increase. Couple that with the fact that it was one of their greatest revenue drivers for the last two years there is not much wiggle room for them,” said Mario Gill. 

The VAT cap is to run for six months after which it would be reassessed.