Drop the price of Premium Gasoline NOW!

[ingalook]

http://www.newsday.co.tt/politics/0,167503.html

Quoting from Hansard, Howai said Imbert in his presentation on Monday referred to PricewaterhouseCoopers budget memorandum where he noted that the subsidy on premium gas was 73 cents, on super gas $1.83 and on diesel $2.71. Imbert in his calculations found that the true price of premium was $4.73

Howai said he also looked at the memorandum and found that the figures were based on a West Texas Intermediate Oil Price of $79 per barrel, which meant the figures were dated. He said using the new retail price of premium gas of $5.75 per litre and the September, 2012 ex-refinery price of $5.84 per litre excluding Value Added Tax (VAT) the true market price would be approximately $7.08 per litre, including VAT.

“This means that the subsidy on premium gasoline at present is $1.16 per litre. This means that Government continues to subsidise premium gasoline,” he said.

So at $79 a barrel The cost of super was $4.73

Now oil is under $40 a barrel, how can $5.75 be justified... notice also how the government throws in VAT as part of the cost of gasoline

Howai pointed out that the price of premium increased from $3 per litre to $4 per litre in September, 2008, by the former Government. He said during the period November, 2008 to May, 2009, the average local crude oil price was $44 per barrel, and the average ex-refinery price of premium gasoline was $2.53 per litre. At these price levels, a surplus of $61.6 million was generated on premium gasoline.

So the Cost of premium is LESS than $2.53

[j.o.e]

Jostissss!!!!

[MG Man]

[mero]

Will only believe this once Daran says it's true

[SMc]

so let them make money on the Premium in order to help subsidise the super and Diesel...

[Dizzy28]

so let them make money on the Premium in order to help subsidise the super and Diesel...

So premium users must subsidize Rajwagons aka Hiluxes, Navaras etc. that are used for personal purposes?

What about the high end diesel SUVs like the Prados, Touraregs and Q7s?

[ingalook]

so let them make money on the Premium in order to help subsidise the super and Diesel...

But the not making more money... they are now spending more on the subsidy for diesel and Super since it made more people switch, they took no consideration for the elasticity of demand for Permium

Mr. Imbert said in 2008, when the price of Premium gas went from $3 to $4, the percentage of users plunged from 33% to 10%.

"Now in 2012, they've increased the price from $4 to $5.75, what do you expect to happen? The usage will drop to level where it is only people who believe that they must use Premium in their car would buy Premium. Why would anybody buy Premium? Super selling at 2.75 a litre, Premium selling at $5.75 a litre. Only a madman would buy gas at 5.75 a litre when you could buy gas at $2.75 a litre."

http://www.ctntworld.com/cnews2/index.p ... Itemid=707

If Mr. Imbert is to be believed here the increase in the price of premium has actually INCREASED spending on the subsidy while simultaneously Negatively affecting the small portion of TnT whose vehicles needed premium, as well as negatively affecting those firms with premium vehicles on offer.

Who benefited? The GOVTT found a way to make a decision that benefited no one

[RBphoto]

My 307SW is not a Rajwa.... oh wait

[SMc]

so let them make money on the Premium in order to help subsidise the super and Diesel...

So premium users must subsidize Rajwagons aka Hiluxes, Navaras etc. that are used for personal purposes?

What about the high end diesel SUVs like the Prados, Touraregs and Q7s?

Maybe they should remove the subsidy from all so everyone can suffer the same, I mean that's only fair isn't it? Perhaps if they did so less people will be on the road unnecessarily or worst case people start car pooling etc. Maybe once this doesn't quite work as planned the government will look at improving the public transportation system to an acceptable degree and if people can get over the thought that they they 'too good to Travel' then perhaps there may be some change in the transport issues people face everyday.

[ingalook]

so let them make money on the Premium in order to help subsidise the super and Diesel...

So premium users must subsidize Rajwagons aka Hiluxes, Navaras etc. that are used for personal purposes?

What about the high end diesel SUVs like the Prados, Touraregs and Q7s?

Maybe they should remove the subsidy from all so everyone can suffer the same, I mean that's only fair isn't it? Perhaps if they did so less people will be on the road unnecessarily or worst case people start car pooling etc. Maybe once this doesn't quite work as planned the government will look at improving the public transportation system to an acceptable degree and if people can get over the thought that they they 'too good to Travel' then perhaps there may be some change in the transport issues people face everyday.

Yes... they can do this, except it will result in 200% inflation destroying our currency and our economy...

But it could work

[Slartibartfast]

I wish travelling made sense. No more having to designate a driver. Everybody could lime hard and travel home at 2:00 in the morning with no problems like some other countries. Instead everybody have to take turns being the one to mash up their suspension on our bad roads and still not be able to have a good time while going home with no one to talk to cuz everybody beppin.

[SMc]

so let them make money on the Premium in order to help subsidise the super and Diesel...

So premium users must subsidize Rajwagons aka Hiluxes, Navaras etc. that are used for personal purposes?

What about the high end diesel SUVs like the Prados, Touraregs and Q7s?

Maybe they should remove the subsidy from all so everyone can suffer the same, I mean that's only fair isn't it? Perhaps if they did so less people will be on the road unnecessarily or worst case people start car pooling etc. Maybe once this doesn't quite work as planned the government will look at improving the public transportation system to an acceptable degree and if people can get over the thought that they they 'too good to Travel' then perhaps there may be some change in the transport issues people face everyday.

Yes... they can do this, except it will result in 200% inflation destroying our currency and our economy...

But it could work

What part of our economy or currency still in good order?

[pete]

What will go up by 200%?

[ingalook]

The ACTUAL price of diesel is $3-$4... Raise it from $1.50 to that price and EVERYTHING in the country will increase sharply in price.

Trinis not typically subtle with their price increases either, remember when flour increased by 10%? Doubles price increased by 50%... Inflation in such high percentages sets off a chain reaction that leads to a situation known as "hyper-inflation" where the value of a country's currency is destroyed.

SMc our currency is relatively stable, value has been pegged at 6.3 tt$ to 1 us for as long as most can remember, our economy remained afloat in the global financial crisis of 2007-2008 wheras other much larger economies crumbled - so yeah we do pretty ok

[ingalook]

I am perfectly happy with a gas price that is COST price for gasoline, that would be about $2.40 for premium and $2.20 for super

[silent_riot]

So when the price of oil goes up again, you want it to raise again?
With a constant fuel prices, you won't have people hoarding fuel during low prices. Also all industries that use any fuel, will have to cater for variations in pricing of fuel which will then result in variations of prices for everything else.

[janfar]

So you all want the market price when Crude us low but not when it is high?

What a country we have become.

[DVSTT]

So you all want the market price when Crude us low but not when it is high?

What a country we have become.

And OP was going so good.....

[novastar1]

So you all want the market price when Crude us low but not when it is high?

What a country we have become.

And OP was going so good.....

I see what you mean.

But I'd prefer not to have the premium "tax" that we have now

[ingalook]

So you all want the market price when Crude us low but not when it is high?

What a country we have become.

And the government wants market price when oil price high but not when it low

What a country we have become

[16 cycles]

Happy at gas price....

Any reason not to decrease a revenue stream and risk devaluing our currency

[janfar]

Reality of the matter is, we should be paying world market value for fuel. Use that subsidy to diversify the economy into agriculture which will result in the prevention of inflation.

The government needs to make solid economical choices. Make a more robust public transport system run on CNG to mitigate Prakash and Boogey from wanting to charge 1 dollar more for short.

Too much freenees going on.

In many other countries you cannot register your car as a taxi unless it runs on CNG. NP should implement all stations to supply CNG at market price.

Allow other competitors into the fuel market and remove the jeopardy.

[ingalook]

Reality of the matter is, we should be paying world market value for fuel. Use that subsidy to diversify the economy into agriculture which will result in the prevention of inflation.

The government needs to make solid economical choices. Make a more robust public transport system run on CNG to mitigate Prakash and Boogey from wanting to charge 1 dollar more for short.

Too much freenees going on.

In many other countries you cannot register your car as a taxi unless it runs on CNG. NP should implement all stations to supply CNG at market price.

Allow other competitors into the fuel market and remove the jeopardy.

I guess you meant "Monopoly" in your last line?

All of what you said is fine except the government needs to change the Law to do this, the GOVTT is currently BREAKING THE LAW by profiting from the sale of gasoline to nationals of TnT

The Petroleum Revenue Stabilization Act was enacted in the 70's to protect the populous from fluctuating oil prices - using revenue collected from foreign oil companies operating in TnT.

The law would be changed over the years to reduce the payment that the foreign oil companies made shifting the burden to taxpayers (not sure who thought this was a good idea)

But - government still collects a significant sum from the exploitation of OUR OIL which they are not applying to their calculation of the fuel subsidy (as dictated by the Act)

Moreover they are profiting from the sale of BOTH super and premium gasoline at the current crude prices - a total contravention of the Act

Their interpretation of the act differs from that of Imbert's in that they aggregate Super, Premium and Diesel, arguing that it is ok to profit from one (or two) if as a whole they are not making a profit - since diesel is still subsidized at these prices.

So in other words, it is ok for Mr. Yaris man to be paying for Mr. Audi Q7 3.0 TDI's diesel (a favorite vehicle of ministers BTW) because Mr. Yaris is driving a "luxury" vehicle

[INHUMAN]

What else new that we dont know about these chazzers in govt or chazzer economy

[STORM1234]

delete

[ingalook]

When oil price go up? We already paying a premium price set when oil prices were USD $85+ I don't know if we going to see prices much over that within the next 5-10 years

[silent_riot]

Lol @ premium price.

[sweeks]

So much for the environment ....

[ingalook]

You know why most trinis don't care about the price of premium??? Because they not buying premium - normal mindset of it doesn't affect me so what do I care?

All 3 of my vehicles (including my B18c civic that I have taken to solodex and Drag-N-Wind) run happily on super, so this really doesn't really affect me directly, but fair is fair...

So much for the environment ....

You are living in your own little world if you think that ANY decision government takes or has taken has ever been about preserving the environment or preventing pollution.

Any legislation in place, any policy - is meant to profit from pollution, never prevent it.

Wake up and smell the refinery fumes my friend

[X2]

Shims... u running a B18c on super ? PM link to dyno charts...


I say... to hell with the price of premium.... Keep the price there... but give us 100RON at the pump.