Revenue for gasoline and diesel generated a little over $5 million in the first six months after a 25 cents per gallon was introduced in July 2010.
That figure would suggest that the government is on target to make up the $10 million in revenue it anticipated to be raised by the measure.
The figures for revenue collected since the duty increase, which were obtained by the Caymanian Compass from the Customs Department by way of the Freedom of Information Law, list the total revenue collected for duty on gasoline and diesel from July to December 2009 as $13,113,643, while $18,474,961 was collected from July 2010 to December 2010, an increase of $5,361,318.
Utility bills, as well as prices at the pump in the Cayman Islands inched higher after the 25 cents per gallon increase in duty took the import duty on fuel to 75 cents per gallon for gasoline and from 60 cents to 85 cents per gallon for diesel.
The increase on gas and diesel import tariffs was passed by the Cayman Islands Legislative Assembly in June 2010.
Kurt Tibbetts, who was Opposition leader at the time, had raised the possibility of the introduction of some kind of cell phone tax, which he said was more discretionary, as a way to raise revenue. Raising the costs of visitors’ permits, as well as licence fees had also been suggested.
At the time, Premier McKeeva Bush referenced a 2006 study in gas prices in Cayman, commissioned by the former People’s Progressive Movement Government, which indicated that the fuel markup at the pump by local retailers was one of the highest in the Caribbean. That review also found that the Cayman Islands government’s import charges were among the lowest in the region, according to the Premier.
“What we have seen is that consumption has not waned and we are on target to make up or exceed the $10 million the government had hoped to achieve. Considering the fact that consumption usually increases in the summer months, we are well on target,” said Customs Finance Manager Mitzi Watson-Jervis.
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Has anyone noticed how quickly fuel prices increase and compare to how long it takes to decrease although crude prices has dropped for some time now. the price for fuel has reached a certain point and not moved. This is extortion.
I posted a comment a month ago predicting exactly what Blue is complaining about.Prices have dropped from 114 a barrel to 92 in the last 7 weeks and gas prices in Florida have dropped mote than 30 cents a gallon in response.
Here we have not seen even a 1 cent drop at the pump.When prices jumped in March we were hit with massive increases within 2 or 3 weeks.
The petroleum inspector needs to put a stop to this profiteering by Esso and Chevron, rather than spending all his time driving around the country at Government’s expense simply to record pump prices!.