Wednesday 20th April, 2011: The Opposition wishes to express its concern with the continued rise in fuel prices and its effect on the Grenadian economy. Over the past few months there has been a dramatic rise in the price of diesel and gasoline which directly affect vehicle owners and in particular bus operators.

Bus operators over the past few years have had to deal with the increase in fuel costs as well as the introduction of the Value Added Tax (VAT) on vehicle parts and accessories. At the same time bus prices have remained at the same level which, with each rise in fuel costs has been reducing the profit margins of bus operators.

Additionally while it is commendable that the administration has seen fit to heed the advice of the Opposition and reduce the price of a 20lb cylinder of Liquid Petroleum Gas (LPG) it must be noted that the price of the 100lb cylinder has increased along with the cost of diesel, gasoline and kerosene notwithstanding the 50 cents reduction in the petrol tax. As such Grenada continues to have the highest fuel costs in the Eastern Caribbean while being closest to the fuel source.

The Opposition therefore wishes to once again call on the Government to not only reduce tax intake, but also to discuss reduction in profit margins per gallon of fuel with all stakeholders, which can be passed on to the consumers inclusive of a special mechanism for assisting mini bus operators.