PRESIDENT of the Automotive Dealers Association (TTADA) Visham Babwah is calling on Government to delay plans to liberalise the fuel industry.
He said the timing is wrong and would further devastate the economy which has taken a covid19 beating.
Babwah views the liberalisation as another form of taxation to impose on the already burdened taxpayer.
“The manner in which they are going about doing this is not good at this point in time,” he told Newsday.
“This would literally put control of fuel pricing in the hands of the Government to increase prices as they see fit to increase revenue demand.”
He said it is another bad Government policy decision like the one taken to close Petrotrin and import fuel for local consumption.
“I am still waiting to see the savings Government has achieved by closing down the Pointe-a-Pierre refinery.”
In the 2020 budget presentation, Finance Minister Colm Imbert announced the decision to liberalise the fuel market and the removal of subsidies in January 2021 leaving prices subjected to market forces.
He also announced the sale of National Petroleum (NP)-owned gas stations to private sector with retailers and dealers being able to fix their own prices.
Earlier last week, Imbert said he would be presenting legislation in the form of the Finance Bill 2021 in the Parliament on July 2 to liberalise the retail fuel industry.
The effect on transportation was spelled out.
Babwah questioned how the proposal would work if Government continues to import the fuel and distribute either directly or through NP.
“Government has not said what the mark up would be, so they could mark up as they see fit. If it goes through NP, NP would have to make a profit for their operating cost and management and then the fuel stations would put their mark up as is their right to do.
“So, there is no fixed price and that is going to affect everybody. As it stands now, premium gas has no subsidy and Government is experiencing a profit. The same can be said for the super gas. Diesel is the only fuel that has a subsidy and there is a deafening silence about CNG.
“A lot of money is being spent on CNG which the NGC chairman Conrad Enill said will come to an end very soon. So why waste money behind that?
“I think this thing about liberalisation of fuel stations right now is really a new tax. I think Government does not want to say they are really going to put a tax on the fuel, but that is what they are going to do.
“They are going to increase the prices to suit their deficit and their revenue shortfall and that is an injustice to the citizens of this country.”
As a businessman, Babwah said he already pays business levy, the green fund tax, customs duty, motor vehicle taxes, health surcharge and quarterly taxes among other taxes.
He expressed concern about Government’s non-disclosure agreement with its creditors, saying there must be accountability when it comes to how taxpayers’ dollars, including his, are spent.
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