Fuel surcharge, high food costs stifling persons in VI– Hon Penn
Hon Penn raised the issue at an Opposition press conference on October 25, 2023, where he added that high electricity costs is also a factor at play.
“One of the challenges particularly many persons are facing, one of the concerns persons expressed to me [is] the issue of high food costs and the issue of electricity and a fuel surcharge that seems to be stifling many families and businesses within this territory.”
Hon Penn added, “And in fact… the last month's bill I think has been the highest the fuel surcharge has been in some time and I've not heard any conversation from the government side of the aisle, the executive side of the aisle, in terms of what type of measures or policies they're going to put in place to help curb the fuel surcharge at the issue in the territory.”
Government intervention on rising costs
Hon Penn said government intervention is necessary as is the case, traditionally, where past governments have opted to support some of the fuel surcharge costs to manage and temper the price of electricity and the price at the gas pump.
He suggested that the Wheatley Government move in that direction to bring some type of relief to struggling families. This he said includes intervention on the cost of food in the VI.
“Just the issue of essentials, of particularly having a dialogue with the key grocers in the country, we [can] figure out how we deal with the issue of a basket of goods in this territory. We’ve continued to have this discussion...to bring some relief to struggling families in this territory, [but] we are not hearing the conversation from the government side.”
Hon Penn said the Opposition will continue to advocate privately and publicly on behalf of the people; however, he said the government needs to work collaboratively with the Opposition.
Hon Penn further asked that the Government take some of the ideas proposed by Opposition Members to deal with local challenges. “A good idea is a good idea, no matter where it comes from, once it improves the lives of the country and improves the lives of the people living in the country, and we're going to continue to do that,” he said.
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28 Responses to “Fuel surcharge, high food costs stifling persons in VI– Hon Penn”
What about the drugs cover up plaguing the territory? Go &*() yourself you damn hypocrite.
In regards to fuel surcharge, government can work with BVIEC to determine how much, if any, cost it can reduce without adversely impacting its operations or it can work with the HoA on subsidizing some of the fuel surcharge, especially for customers at the lowest rung of economic ladder. This action have consequences, for it will require taking money from other areas or functions. It can get radical and dictate that all ministries take a 5-10% budget reduction. In the public sector, all departments should anticipate having to make budget cuts, so they should have various budget cuts bands (5%, 10%, 15%) already on the shelf and ready to roll with. On the other hand, the cost of living piece is a bit more challenging. Yes, government can work with and ask businesses to lower prices but it cannot force them to lower prices. Secondly, it can lower import duties and hope that merchants pass the reduction onto to customers. It is important to note that a former government unsuccessfully tried this. The rates were lowered but the savings on average were not pass on to customers. Another radical option is a Universal Basic Income (UBI) initiative with a sunset clause for a) all residents, or b) selective/targeted segments of the population. A typical UBI gives a monthly, annual, etc financial allocation to residents. It is it socialist but what other functions in the BVI are socialist?
What can be done about this I leave to the government.
don’t have direct control of businesses as is the case in communist economy and less so in Socialist economy. Locally, government can make some fiscal adjustments(the BVI does not have a central so monetary policy adjustment is not an option), lowering payroll taxes, adjusting tax ranges, reducing custom duties, raising the minimum wages, etc. Many see price control as a solution. However, to me price control leads to shortages and poor quality.
Your wallet will get fat,you wIll lose fat and be healthier. You will look better and feel better. Another time we will talk about the wigs,eyelashes. Fingernail spikes all are soo unsightly and expensive additions especally in this high hot sun except maybe Halloween
Buy from local farmers and Fishermen.
Paying for your poison is bad enough but to the extent of making unknown folks in distant lands your beneficiaries ,some of them your enemies, is downright Jack donkey parading of fools. Get a grip folks!!!
government needs to stop some of travel overseas because you not really seeing the purpose these travel
where is the consumer protection because of the establishment simply taking an advantage of the people
wharfage was increased by 100% on everything imported, from 1% -2%. Shipping is added to the items cost and duty is paid on the freight also. e.g $100 cost of goods $10 shipping = $110 duty is 10% of the $110. The food suppliers were excluded from this but the government reversed this.
So freight increases and fuel increases to the cost of duty increases. All these costs need to be idded to the item which makes things more expensive.
You need to understand the price structure before you say the retailers ar eprice gouging, Look at how taxes are collected from the government to understand the increases.
Seperate fright from duty, reduce wharfage back to1% this will greatly reduce taxes on imports.
Look at duty, Chicken 0%, Meat 5%, seafood 15% Fresh veg 0% tinned and frozen veg 5%. Wine/Beer 15% this was $1.20 gal previously so you pain on the volume not the price. a $10 bottle wine at cost. the duty increase to15% added $10 to a bottle on your wine list in the restaurant.
A clear understanding is needed but dont think the elected government understand the way prices have increased
The overspending at the Tortola Oier Park has put a dent on the economy. Where was Hon. Penn. When one analyzed the economic impact that project cost taxpayers of this country, it is very difficult to recover from there. This is what the Opposition should have told the people of this country. We would have had better roads, medical supplies and better educational facilities.
On the other hand, residents at the lowest rung on the economic ladder expect government to provide direct economic assistance, in particular times as this when cost of living is skyrocketing. Government can provide cash payments, subsidizing utilities, etc.