Customers waiting for gas and diesel. (Photo by Kiara Smith)
By Kiara Smith on Tuesday, 5 April, 2022 at 08:47 PM
Barbadians are paying more for petroleum products after a price increase on Sunday, April 3rd.
Gasoline now costs $4.13, with an increase of 14 cents, diesel is at $3.45, and kerosene $2.11.
The Prime Minister, Mia Mottley announced at the Budget and Financial Proposal, last month, that government will cap the Value Added Tax on petroleum products, decreasing the price of gasoline from $4.13 to $3.99 and diesel from $3.46 to $3.32.
Mottley added that “The Government can only reduce the amount of VAT it receives, not the international price at which we purchase oil.”
She further stated, “Prices at the pump too could still rise from these new lower levels if the international situation worsens, but they will not go up as quickly as before, as now there would not be any accompanying increase in VAT payments.”
On April 3rd, gasoline and diesel returned to the price of $4.13 and $3.45 respectively. A post released from the Barbados Government Information Service said in light of increasing oil prices internationally, the prices had to be adjusted upward for April.
Political scientist Kristina Hinds said, “I think that it is going to increase cost of living and people are already struggling under the weight of high costs so it’s quite unfortunate especially since many people would have anticipated that gas prices would not rise after the last budget.”
However, she added that there may be some confusion in understanding the cap on the tax and not on the oil itself.
“Although the value-added tax, has been capped, the price of oil has not been capped so what we see is an increase in costs because of the price of the petroleum products and not because of the tax.”
Salesman, Errol Hope said that the public must take personal responsibility for the fuel they use.
He stated, “I believe that what we have to do is to curb our driving habits, use online services or even take public transportation sometimes.”