7 News Belize

Barrow's Gas Tax Coming into Effect
posted (March 31, 2009)

Tomorrow is April 1st - which is the first day of the new financial year which means it is day the new flat tax on fuel comes in to effect. That’s right, as we’ve been reporting, and as the Prime Minister announced in his budget speech – a new flat tax of a dollar per gallon is being implemented to help plug the $60 million gap in the budget. So the news tonight is that diesel, premium, and regular gas will all increase by a full dollar at midnight. And though we first broke the story four weeks ago and the Prime Minister made it official in the budget speech – it was news to drivers when we visited the gas station today.

Keith Swift Reporting,
Today - there were no long lines and no mad dash of drivers filling up at gas stations - because no one we spoke to knew that the price of gas is going up.

Driver #1: No I didn’t know.
KS: The Prime Minister said it in his budget speech.
Driver #1: Sorry but I forgot to watch news.
KS: Well now that you know, how do you feel about it?
Driver #1: But why, I mean.

KS: Remember he said they needed to raise the price of gas so that they could plug the tax gap.
Driver #2: Well I didn’t hear all of his speech so I didn’t know.
KS: Now that you know, what is you reaction?
Driver #2: Well we just have to pay the price, that’s all. We can’t do anything about it.

Driver #3: Well actually the price of gas has been going up for several weeks now.
KS: But did you know tomorrow it is going up by $1?
Driver #3: No I didn’t have any idea.
KS: Remember the Prime Minister said it in his budget speech.
Driver #3: I never really heard the budget speech so I don’t really know.

Driver #4: I don’t know.
KS: Remember it is April 1st and the Prime Minister said it will go up by a dollar.
Driver #4: I am not sure. Whether it goes up or not, I will still have to buy. A dollar, it will hurt me but I’ll have to take it.

Driver #5: I didn’t know that so I have to load up now then.
KS: Remember the Prime Minister said it in his budget speech?
Driver #5: I never did listen to the speech believe me. I didn’t listen to it but they said that would stay right there, that $6.58 for the gallon but if it is going up again, I don’t know what gaan on.

The price increase will actually take the price a premium gallon from $6.03 to $7.03 and a gallon of regular from $5.66 to $6.66. Most drivers aren’t complaining because they say a year ago they were paying well over $10 a gallon for gas.

Driver #6: A dollar is nothing much but the price of gas went down already and I guess it is good time. I didn’t know it was going up. But it was $11 and so anything lower than $11 is good enough. I don’t mind.

Driver #4: At least I know the gas price in the world market is going up so I believe that will affect us eventually.
KS: Will this extra dollar hurt your pocket?
Driver #4: Sure, sure but the gas prices, when it was down we really were doing better than first when it was at ten change.
KS: Will you be filling up now that you know it is going up?
Driver #4: Well I will have to try and full, have to try and take advantage of that dollar.

KS: Do you mind paying the extra dollar?
Driver #2: No not at all because it has gone down before handsomely so just paying an extra dollar more is not a problem.
KS: And now that you know it is going up, will you be filling up?
Driver #2: Well I am not filling up, I am just putting in what I need to put in.

But it is a problem for at least one driver.

Driver #1: Why to the gas?
KS: Ask the Prime Minister.
Driver #1: Well they need to explain that.
KS: So you have a problem paying the extra dollar?
Driver #1: Of course yes because right now everything is hard and the business is really slow.

Driver #6: I didn’t know but if the gas is going up again what will we do because a lot of our people in the city, we taximen, we will not be able to run a taxi because we have enough dollar taxis and we can’t survive. I nuh happy, sometimes I run out of fuel. As a matter of fact I am looking for a next job because I can’t sustain with my family.

KS: Do you mind paying the extra dollar?
Driver #7: If I have to, I can’t do any better.

There’s one wrinkle in the story, up to this evening, gas stations we contacted had not received the standard notification from the Ministry of Finance authorizing the increase, so although it was announced for April first implementation may lag, we stress that it may.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize