The company yesterday announced hefty increases in ex-refinery prices, which Mr. Paulwell said had brought pump prices to record highs. He said 87 and 90 octane which went up by almost two dollars, diesel which increased by $3.15 per litre and ULSD which will cost $2.85 more per litre will hit the cost of commuting in a very serious way.
The PNP Shadow Minister said these massive increases were hitting consumers while they are already paying high taxes to provide an oil hedge and yet the government refuses to provide the protection. He again called on the government to immediately roll back the hedge tax so consumers are able to use their funds to protect themselves.
Mr. Paulwell noted that crude oil price was now about US $77.00 per barrel and expected to rise even further. He said the government must act now or the pass-through effect of higher fuel prices will mean increases in the costs of goods and services and eventually higher inflation.
He noted the current uptick in inflation and said higher fuel prices could derail the country's inflation target set at 4-6 percent.
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