Any hopes that declines in fuel prices would persist were dashed with the news (see related story) that they are going back up effective 6:00am tomorrow, Friday. Gasoline will increase by about four Netherlands Antillean guilder cents or from NAf. 2.257 to NAf. 2.299 per litre and diesel fuel by five cents from NAf. 2.206 to NAf. 2.258.
Gasoline was most recently decreased on December 17 from NAf. 2.346 to NAf. 2.257 per litre, when diesel fuel stayed at NAf. 2.206. Merely six days earlier rates had already been reduced, so much so that gasoline went down from NAf. 2.370 to NAf. 2.346 per litre despite St. Maarten’s temporary excise (import) tax relief ending, while diesel fuel saw a considerable drop from NAf. 2.573 to NAf. 2.206.
The latest development does not mean Dutch-side fuel prices will necessarily keep rising, but global oil markets obviously remain volatile. And although it’s certainly not the only factor, this situation undoubtedly contributes to continued inflation.
Especially under the present circumstances, announced hikes in the minimum wage and old age, widow(er)’s and orphans’ pensions AOV/AWW indeed seem justified. For the same reason, it would be hard to argue against the push for higher bus tariffs reported on in Wednesday’s newspaper.
Of course, there will probably be a chain reaction as businesses pass higher personnel expenses on to consumers, adding to the cost-of-living spike that affects particularly low-income groups. Nevertheless, for the people involved and currently having a hard time making ends meet, any increase in their purchasing power is probably very welcome.
Government did its part by greatly expanding the so-called basket of essential goods with maximum prices, but it’s still a free market economy where healthy competition based on supply and demand should determine such in a vast majority of cases. And good entrepreneurs will always try to minimise the impact by absorbing financial consequences as best possible in the long-term interest of the company and its clients.
Raising prices is understandable and perhaps even unavoidable. However, doing so in an exorbitant manner can easily prove counterproductive for all concerned.
“Reasonable” is the key word.
