Trade Director Mathan Walter said the prices of petroleum in Dominica are calculated over a five-week period. He said that despite the recent fuel price hike, the price of petrol is relatively cheaper in Dominica than in St. Kitts and Nevis and some other Caribbean countries.
Walter said the price of petrol is EC$14.98 in Dominica, while it is EC$16.10 in St. Kitts and Nevis, and USD5 in the United States. He said the DLP administration is working hard to bring down the prices of the product, adding that there is a formula adopted for arriving at the pump price.
The director of trade said a third-party company calculates the prices of petroleum products using daily postings. These postings are recorded as a final price on a daily basis at 3 O’clock and this price is analyzed over a four-week period, before the Ministry of Trade calculates its average at the fifth week.
He revealed that the average arrived at by the trade ministry at the fifth week becomes the pump price that Dominicans pay for when buying fuel. He said the four-week average calculation makes up the “price buildup” which includes the fuel delivery cost to Dominica, its retail price, and relevant government taxes.
He said the inputs of direct consumers are also factored in before the final price is implemented.
It is not a random exercise. It is not an exercise where, because the price has gone up as a result of the war, it is immediately being applied. The price changes on a daily basis and people have to understand that petroleum products are a global commodity. The prices are globally decided based on the markets and so, whatever the barrel of oil is on a particular day, this is recognized and noted by the Ministry of Trade and we do a five-week cycle.
Mathan Walter, Trade Director
Businessman Anderson Jolly expressed dissatisfaction with the formula used by the Skerrit-led government, saying it is not accurate. Economist Thompson Fontaine also lent his voice to the debate, stating that the model used by the government to determine fuel prices is defective and must be reviewed.
He said the price should not be dependent on world market prices which are highly speculative, and that the government should absorb some of the taxes to relieve consumers.
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