Motorists are waking up this morning to news that the local gasoline and diesel prices increased by respectively 29.4 and 22.1 Netherlands Antillean guilder cents per litre. Any hope that the country might somehow be spared high international oil prices once again proved false.
The last hike had been on Thursday, February 17, but it followed another one less than two weeks earlier for gasoline, which went up by in total 44.6 cents per litre since then. The exact impact on public utilities rates is unclear, but most will already have noticed it on their GEBE bill.
Not that people weren’t warned. On Wednesday, February 24, Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Roger Lawrence announced engaging in talks with major importers and distributors to tackle inflation and keep essential goods – of which an expanded list was drafted – affordable.
The next day St. Maarten Consumers Coalition (SMCC) expressed concern about the rising fuel tariffs and consequences for particularly the elderly. On Wednesday, March 16, a GEBE delegation told Parliament it was looking into allocating a bigger amount for its senior relief programme.
Soualiga Employers Association (SEA) in a release published on Wednesday, March 9, suggested – among other things – amending the water production concession with a maximum fee per gallon used and a review of GEBE’s fuel clause. On Monday, March 15 the TEATT ministry warned it would be adjusting fuel rates further upwards due primarily to the war in Ukraine and related sanctions against Russia.
All that doesn’t make today’s increase any more pleasant. The Netherlands is giving a temporary reduction in fuel excise tax to compensate consumers, but St. Maarten and Curaçao are hampered because of maximum 2022 budget deficits approved by the Committee for Financial Supervision CFT and Kingdom Council of Ministers in The Hague.
Unless the money can be earned or saved elsewhere, lowering taxes is not a realistic option at this moment, also because both islands still require Dutch liquidity support and are tied to conditions for such including the execution of a package with restructuring measures to be supervised by the Caribbean Body for Reform and Development COHO. Trying to deviate from these agreements would prove extremely costly especially because prior loans are maturing and would then need to be repaid soon.
