Gas buffer near – Cabinet to discuss response to surging fuel costs

Amid threats by the People’s National Party (PNP) to take protest action in pressing the Government to address spiking fuel costs, the Office of the Prime Minister (OPM) yesterday revealed that Cabinet would be designing strategies to cushion the effect of rising international oil prices on local consumers.

The PNP on Saturday indicated it would be stepping up its demand on the Government to immediately cap the ad valorem tax on petroleum products and to remove the general consumption tax on electricity bills.

However, the party had warned that it would be forced to take action during this week if the Government failed to respond by today.

The OPM statement yesterday indicated that Cabinet during its retreat on Saturday considered the impact of the increasing price of oil which is being reflected in the cost of fuel.

“Cabinet has requested further data which will be examined at its regular meeting (today), at which time a decision will be taken on measures to cushion the effect of the rising international oil prices on the local consumer,” the OPM stated.

Minister with responsibility for information, Daryl Vaz, told The Gleaner yesterday that the issue was on the agenda as a matter of urgency as the hike in prices would have to be discussed due to the upcoming Budget preparations.

The Budget is scheduled to be presented on Thursday.

In the meantime, Vaz described the People’s National Party (PNP) as a “redundant set of despots”.

“It doesn’t surprise me in the least that the PNP is responding to this with the threats of demonstrations and disruption,” he argued. “The by-elections because of dual citizenship are now over and, therefore, the PNP has to find other ways to cause distraction and disturbances while the Government continues to try and fight the battle of the worldwide recession.”

Generation 2000 (G2K), the young-professional affiliate of the JLP, yesterday said threats of protest action by the PNP over increasing fuel prices were unnecessary.

G2K also said the PNP’s protest threats were potentially destructive as Jamaica has a poor track record for protests, as they typically descend into violence and other criminal activities.

“Jamaica, faced with a tenuous economic situation, can ill-afford protests at this time,” G2K said.

The group argued that while the Government urgently seeks out ways of mitigating the impact of increasing fuel costs on consumers, persons must be mindful of the fact that speculators, instability in the Middle East and other international developments are at the centre of rising oil prices.

Yesterday, however, it was clear the PNP would have the support of the Jamaica Association of Transport Owners and Operators (JATOO) as it said it would support any action that would push the Government to “pull up brakes on the runaway fuel prices”.

The association called for the Government to immediately put a cap on the ad valorem tax on fuel to halt the running increase on the price of gas and other energy-related products.

“The transport sector is suffering the ‘phangs of hell’ at this time which is giving rise to various issues on the road, such as accidents as operators seek to bend the rules in order to increase their earnings,” JATOO said.

Source: Jamaica Gleaner