Gas prices in Trinidad & Tobago

[Allergic2BunnyEars]

Also it should be noted that VAT is charged on fuel. Premium price didn't drop from $5.75/L when vat was changed from 15 to 12.5%. Why? The ministry of energy changed other parts of the equation (like the initial price they choose) to keep the final price at $5.75 even after the vat reduction.

So basically the government is doing the same thing that Mario's, subway and other businesses did and just raised their base price while reducing vat so as not to pass on the savings to the public.

[Richard Marshall]

Now I'll say it. This is the worst government ever.... Ah now get back meh car on d road and dey want to increase gyas. Man...

[scotty_buttons]

Also it should be noted that VAT is charged on fuel. Premium price didn't drop from $5.75/L when vat was changed from 15 to 12.5%. Why? The ministry of energy changed other parts of the equation (like the initial price they choose) to keep the final price at $5.75 even after the vat reduction.

So basically the government is doing the same thing that Mario's, subway and other businesses did and just raised their base price while reducing vat so as not to pass on the savings to the public.

Thanks for the explanation bunny. A lot clearer now.

That said, what they doing is real bullsh!t

I agree with paying the cost price of fuel but of course, that's only fair, ergo it ain't happening with this government.

Before they cut GATE or CEPEP eh.

[kjaglal76v2]

A2BE, thnx for the explanation

[ingalook]

A large part of the "subsidy" that government "pays" on behalf of motorist is actually VAT... They pay THEMSELVES this tax and then complain about paying it... Like they are doing us some big favor.

They cannot include VAT in the cost of gasoline production! What kind of backward logic is that?

Also without VAT both premium and super should be CHEAPER than their current prices... Where they getting this 40%+ more figure is a a mystery...

[playerskrew]

oil price could go to $200. a barrel no price in this country will drop.

[Twin Isle Cars n' Parts]

Still greater than the last administrathieves

And you still seem blind???
Unless yuh pumpin some serious $$$ & can comfortably afford to live through this sheet!!!

[scotty_buttons]

oil price could go to $200. a barrel no price in this country will drop.

This.

[WarrLordd]

Still greater than the last administrathieves

And you still seem blind???
Unless yuh pumpin some serious $$$ & can comfortably afford to live through this sheet!!!

Yep spend money on clothes and gears but hungry looking whole week. Life of a pnm

[Allergic2BunnyEars]

To Subsidise or Not to Subsidise
by KEVIN RAMNARINE

https://www.guardian.co.tt/columnist/20 ... -subsidise

The subsidy on petroleum products such as gasoline and diesel has its basis in the Petroleum Production Subsidy and Levy Act of 1974 which aims, among other things, to shield the population from the vagaries of international oil prices. This policy came about following the quadrupling of oil prices from 1973 to 1974 on account of the Yom Kippur War and the consequent Arab oil embargo of Western countries.

Other countries have similar fuel subsidies in place with the most extreme case being Venezuela where diesel is 1 US cent per liter. By comparison, in T&T we pay $TT1.72 per litre for diesel or 26 US cents per litre (diesel is cheaper than bottled water in T&T). Interestingly, the most expensive diesel can be found in places like Norway and Sweden which are among the richest countries in the world.

In T&T, the subsidy is a function of the international oil price. This trickles down to what is called the ex-refinery price. This is the price at which Petrotrin sells gasoline and diesel to the two wholesalers Unipet and NP. The higher the international oil price is the higher the ex-refinery price of gasoline and diesel will be. Therefore, keeping the retail price at the pump constant requires a Government subsidy. Part of the subsidy is covered by a levy paid by the oil and gas companies.

In the last 15 years (2001 to 2015) the cost of subsidising fuel was TT$34.4 billion. This is about US$5.2 billion or the equivalent of what is in the Heritage and Stabilization Fund. In times of high international oil prices such as 2011 to 2014 the subsidy averaged over TT$4 billion per year. However, given that oil prices are currently low, the subsidy should be much lower.

At current oil prices (about US$40 per barrel), there is no subsidy on Premium Gasoline. In fact when you put Premium Gasoline in your vehicle you are actually paying the Government about TT$2 on every litre. At current oil prices there should be a small subsidy on Super Gasoline of about 15 TT cents. Diesel however remains subsidized by approximately TT$1.10 per litre.

I guess that after spending TT$34.4 billion a natural question would be–what do we have to show for that expenditure? It may be argued that the entire population has benefitted. But have some benefitted more than others? The argument one hears is the subsidy benefits the poor man. That may be somewhat true but the facts are that the fuel subsidy benefits the rich far more than any other group.

The subsidy also caused or causes an illegal trade in diesel. In 2011 the Ministry of Energy took the lead to deal with this scourge. I cannot say convincingly that it was stamped out but I can say it was dealt a serious blow. The facts are that in 2010 the illegal trade in diesel was out of control. In 2011 the Ministry of Energy and other Government agencies co-ordinated efforts to treat with the problem. The result was a drop in the sales of subsidised diesel from 669 million litres per annum in 2010 to 536 million litres at the end of 2015.

This is a difference of 133 million liters of diesel or a 20 per cent decline.

That can be attributed to the illegal trade in diesel which saw our subsidised diesel allegedly being sold in South American countries and to fishing vessels in the Southern Caribbean.

The other negative aspect of a fuel subsidy is the impact it has on energy efficiency, the environment and carbon emissions.

Everyone talks about greening this and greening that. That is laudable.

However, subsidies on gasoline and diesel won’t help us get there.

We have made a commitment to the United Nations at COP 21 to reduce our Carbon Dioxide emissions in the transportation sector by 15 per cent by 2030.

We should take this commitment seriously. What is the plan to get there? CNG and Hybrids are the way to go. I’m happy to see that CNG is starting to gain momentum and we are starting to see some more Hybrids on the roads.

The issue is not whether we need to subsidise or not to subsidise. The consensus in the academic community suggests that the subsidy on transportation fuels should go the way of the negative list and price controls.

There is no economist worth his salt who thinks it should stay. The issue however is how the Government manages the removal of the subsidy. It should be removed incrementally and in a manner that manages inflationary pressure while allowing the country to adjust.

T&T has no option but to migrate towards a market economy. The alternative to that is a set of failed populist socialist policies which tells us to buy a subsidised steel plant that can’t make money.

[skylinechild]

Problem is what can we manufacture that we can export...

Lots of cottage industries existing but struggling to expand due to lack of funding
..

We all know how hard it is to make money 'legally'. Banks are a total waste of time and the Trinidad business model is either yuh have money or not. . So investment in the cottage industry could open an export market. ..

lets define cottage industries as small / micro businesses...sayin "cottage industry" have me thinking the business making cheese....

some cottage industries are struggling to expand due to the high cost they want for their product / service.

so lets use an automotive example...say hydro dripping. relatively new to our country very few ppl doing it. its a small business with the opportunity to make alot of $$$

cost to hydrodrip one piece of plastic. - roughly 5 inches wide and 8 inches long....costing $1600???
when the OEM part hydrodipped costing 35 USD???
even including shipping from japan will NEVER reach that 1600 cost.

therefore we choose to buy outside...using USD..thereby contributing to the forex drain.
if everyone on tuner cud get cheaper outside...and purchases outside....imagine the amt of USD we spending.

meanwhile the small business either close up...or lower price to make it more competitive.
it is what it is.

[DVSTT]

Thanks A2BE

[zoom rader]

Time to totally remove gas subsidy .

Since kwame get tida he only driving up and down.

[pete]

http://www.globalpetrolprices.com/Trini ... ne_prices/

Where did they get that the government is making $2/liter on premium tho?

[Allergic2BunnyEars]

Time to totally remove gas subsidy .

Since kwame get tida he only driving up and down.

Hush yuh stink mouth.

[S_2NR]

Zoom Rader is so much kicks.

[kjaglal76v2]

Time to totally remove gas subsidy .

Since kwame get tida he only driving up and down.

lmfao

[Advent]

Time to totally remove gas subsidy .

Since kwame get tida he only driving up and down.

Hush yuh stink mouth.

[Chimera]

Problem is what can we manufacture that we can export...

Lots of cottage industries existing but struggling to expand due to lack of funding
..

We all know how hard it is to make money 'legally'. Banks are a total waste of time and the Trinidad business model is either yuh have money or not. . So investment in the cottage industry could open an export market. ..

lets define cottage industries as small / micro businesses...sayin "cottage industry" have me thinking the business making cheese....

some cottage industries are struggling to expand due to the high cost they want for their product / service.

so lets use an automotive example...say hydro dripping. relatively new to our country very few ppl doing it. its a small business with the opportunity to make alot of $$$

cost to hydrodrip one piece of plastic. - roughly 5 inches wide and 8 inches long....costing $1600???
when the OEM part hydrodipped costing 35 USD???
even including shipping from japan will NEVER reach that 1600 cost.

therefore we choose to buy outside...using USD..thereby contributing to the forex drain.
if everyone on tuner cud get cheaper outside...and purchases outside....imagine the amt of USD we spending.

meanwhile the small business either close up...or lower price to make it more competitive.
it is what it is.

I never even thought of that.
Look i does order all my business cards from vistaprint
I pay people on freelancer for artwork for adds and websites

[fallen_angel]

^^ it look like is u who drainin all d forex..
i sure it have hungry ppl rite here who cud giv u those things

[Miktay]

Problem is what can we manufacture that we can export...

Lots of cottage industries existing but struggling to expand due to lack of funding
..

We all know how hard it is to make money 'legally'. Banks are a total waste of time and the Trinidad business model is either yuh have money or not. . So investment in the cottage industry could open an export market. ..

lets define cottage industries as small / micro businesses...sayin "cottage industry" have me thinking the business making cheese....

some cottage industries are struggling to expand due to the high cost they want for their product / service.

so lets use an automotive example...say hydro dripping. relatively new to our country very few ppl doing it. its a small business with the opportunity to make alot of $$$

cost to hydrodrip one piece of plastic. - roughly 5 inches wide and 8 inches long....costing $1600???
when the OEM part hydrodipped costing 35 USD???
even including shipping from japan will NEVER reach that 1600 cost.

therefore we choose to buy outside...using USD..thereby contributing to the forex drain.
if everyone on tuner cud get cheaper outside...and purchases outside....imagine the amt of USD we spending.

meanwhile the small business either close up...or lower price to make it more competitive.
it is what it is.

Interesting...

How this cost $1600? Parts labor machines chemicals?

Or men bussing price?

https://youtu.be/fSyvw-A5z2E

[88sins]

is usually jus men bussin price

[fallen_angel]

well if someone have time n money to worry about hydrodipping rice for their car they obviously have extra cash or not part of the population that affected by price increases...so they could cope with men bussin price

[De Dragon]

well if someone have time n money to worry about hydrodipping rice for their car they obviously have extra cash or not part of the population that affected by price increases...so they could cope with men bussin price

I think it was just an example There are lots of other services that you get your eye removed for.

[S_2NR]

Yea I agree. Trini businesses ridiculous. Little variety, poor customer service (most of the time), poor warranty, high unjustified prices. I buy everything expect groceries and car (can't avoid stealership) abroad and I don't give a sheit. Let them greedy businessmen close up

[fallen_angel]

horse...all bs aside...if we want our island to ever b better we need 2 lose that "dont care" attitude, its just that what got us in this position.

if we dont care today and think it not affecting us then our children will have to care tomorrow because it definitely going to affect them. we may not be around but if we dont change our attitude as individuals we can never expect improvement, everyone has to do their part regardless of how small it is or how insignificant they think they are. blaming the government not going to help because politicians will always be politicians, they are all corrupt, not only here, so the responsibility come back on d individual...if we want a better country to live in we have to create it, we have to lose d selfish mentality of "not my problem" and "i am not affected"

[S_2NR]

So I should accept all the issues highlighted above for the greater good? Why business people don't raise their standards and become more competitive?

[bluesclues]

Problem is what can we manufacture that we can export...

Lots of cottage industries existing but struggling to expand due to lack of funding
..

We all know how hard it is to make money 'legally'. Banks are a total waste of time and the Trinidad business model is either yuh have money or not. . So investment in the cottage industry could open an export market. ..

lets define cottage industries as small / micro businesses...sayin "cottage industry" have me thinking the business making cheese....

some cottage industries are struggling to expand due to the high cost they want for their product / service.

so lets use an automotive example...say hydro dripping. relatively new to our country very few ppl doing it. its a small business with the opportunity to make alot of $$$

cost to hydrodrip one piece of plastic. - roughly 5 inches wide and 8 inches long....costing $1600???
when the OEM part hydrodipped costing 35 USD???
even including shipping from japan will NEVER reach that 1600 cost.

therefore we choose to buy outside...using USD..thereby contributing to the forex drain.
if everyone on tuner cud get cheaper outside...and purchases outside....imagine the amt of USD we spending.

meanwhile the small business either close up...or lower price to make it more competitive.
it is what it is.

Dont know if its just me. But concerning the cottage industry's local cheddar cheese production, i find the quality dropping. Anyone else find the local cheese dont have the same quality? we cheese was ranked one of the best in the world at on point but considering my experience over the past 2-3 months, maybe its just coincidence but the flavour and consistency seem to drop to me. maybe the next cheese i buy will be better.

[D Diesel Report]

Yea I agree. Trini businesses ridiculous. Little variety, poor customer service (most of the time), poor warranty, high unjustified prices. I buy everything expect groceries and car (can't avoid stealership) abroad and I don't give a sheit. Let them greedy businessmen close up

And what shall you do when your online purchases in USD become limited and are taxed?

Sometimes local is the way to go. I've heard lubing up before helps.

[S_2NR]

If govt want to tax onine well..
Do without until I can take a flight or someone I know does. I adamantly don't like over spending money on mediocrity. I am certain if government starts that sheit, suitcase couriers will be the new style. There will always be a way.