Prime Minister Dr. Ralph Gonsalves during a call to the Shake Up program aired on WEFM earlier today announced that the Government has covered half of the fuel surcharge increase.
The Prime Minister said this course of action was taken following a call from the Chairman of the St. Vincent Electricity Services (VINLEC), who informed him that the fuel surcharge rate will see an increase of fourteen cents per unit.
“I got a call from the Chairman of VINLEC Rene Baptiste who indicated to me that because of the price of diesel that the number for the fuel surcharge, which is to pay for the increased price for the diesel, would make the fuel surcharge jump from 58 cents per unit to 72.5 cents per unit, a jump of 14 cents per unit.” He said.
The Prime Minister then goes on to discuss the measure taken in further detail.
“What we are going to do, we are going to split the 14 cents, let the consumer pay 7 and we bare 7. We’ll keep it below what the highest point has ever been, but still it will increase. VINLEC would absorb about $500,000 of that and the Government would put about a number close to $300,000. If this has to be repeated next month, we’ll have to probably reduce the way that formula is, from between the Government and VINLEC. It’s a difficult period” The Prime Minister stated.
According to the Prime Minister, the highest the fuel surcharge rate has ever been was back in 2008, where it got to as high as 67 cents per unit.
