Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

Motorists in Grenada can breathe a sigh of relief with fuel prices at service station not expected to rise in the coming weeks.

A well-placed source told GRENADA TODAY that there was a significant drop in the price of the last shipment of gasolene brought into the country by the dealers, Texaco and Sol Antilles & Guianas Ltd, formerly known as Shell Antilles.

According to the official, the government has been able to get its full share of profits on the product and is right now making $3.83 per gallon from the imported product. He said the last shipment which came in around the middle of December landed in the country at $1.51 U.S per gallon, much less than the previous shipment.

He felt that if the Keith Mitchell-led New National Party (NNP) government had allowed the price of gasolene to float on the local market there was a distinct possibility that vehicle owners could have seen some relief in prices paid at the pumps. “If they (government) had allowed the price to float, the price would have gone down below the current price paid of $10.89 per gallon to around $10.29”, he said.

According to the gas station dealer, the government is in no position to complain that it is not getting more than its fair share of taxes at the moment from the imported fuel. Under the current arrangement, the landed price of gas in the country is around EC$5.20 per gallon.
The price is further increased through a 25 cents Petrol Levy imposed by government, as well as 95 cents per gallon that is added on by dealers such as Texaco and Sol.

In addition, the price is further affected by the Custom Service Charge (CSL) which goes to the government while another 90 cents per gallon is taken in by the retail outlets selling the product. A few months ago, Energy Minister Gregory Bowen warned that the price could reach as high as $14.00 per gallon at the pumps if the landed price of the product in the country continued to go up.

However, the source pointed out that the government fears are not being realised at the moment and that consumers could take some comfort from the prices now paid for imported fuel.

“...There is no reason for them (government) to bring the price up to $14.00 per gallon. They are taking in their full share”, he remarked.