Four months ago, on March 4th to be exact, motorist were delighted to learn that the price of fuel had finally seen a reduction after being on the constant rise since January 1st. But tonight, we say to consumers, “hold on to your pockets because the price of fuel has augmented with premium passing the $12.00 mark”.

As of midnight last night a gallon of premium gas went from $11.67 to $12.11 seeing a 44 cents increase. Regular saw a 35 cents increase and now sells for $11.15 instead of $10.80 per gallon. As for the price for a gallon of diesel, it went from $10.07 to $10.25 seeing an 18 cents increase. Kerosene is the only fuel that did not see an increase as the price remains at $8.70 per gallon.

Reports are that the hike in prices is due to government’s reintroduction of the General Sales Tax on fuel. Based on our records this is the 6th time this year that fuel prices have seen an increase.

CTV3

Economic Indicators breaks down cost of fuel

Have you ever wondered why you pay such a high price for fuel at the pump? What is it that determines when the price falls and when it increases? Tonight we begin a series on the causes of the spike of fuel prices at the pump and if these are determined by prices on the world market. We will examine the question “When the price of oil on the world market falls, shouldn’t the price at the pump fall?” Let us first look at all the costs that are incurred on imported oil as it makes its way to the pump. This analysis uses data from January 2000 to August 2012. There are three major categories of cost which include: landed cost; government charges and commercial charges. The landed cost is composed of CIF in Belize dollars, handling; port fees; and stamp duty. While Government charges are comprised of import duty per US gallon; General Sales Tax (GST); environmental tax; and Revenue Replacement Duties. Commercial charges are composed of: delivery for Belize City only; wholesaler margin; and dealer’s margin service station. The charges incurred in each of these categories are for landed cost, approximately fifty-two percent. While government taxes are approximately thirty four percent and total commercial charges are approximately fourteen percent. Now let us look specifically at the costs which make up the Commercial Charges. The analysis shows that from the total Commercial Charges, the majority of the charge is taken by gross margin dealers (service station) sixty three percent; while the wholesaler margin is thirty one percent; and delivery for Belize City only is six percent.

The commercial charges translate to the amount you finally pay at the pump. In order for the service station to make back sixty three percent, this has to come from somewhere. The same goes for the wholesaler margin and for the delivery costs. And in the end it comes from your pocket, as the consumer. So the next time, you stop by a gas station, and you dish out close to thirteen dollars for a gallon of premium, you will know that you are paying a high tax. If the government did not impose such a huge percentage of tax, savings could be passed on to consumers. And since we know that the high price at the pump affects everyone, from the consumer to industries, it is an incurred cost in production which again is translated to every consumer in a vicious cycle of inflation or inflated cost. It affects every aspect in the cost of living. This weakens, rather than strengthens economic growth and dampens the means to strive for economic progress. In the next segment we will look at how crude prices affect the retail prices of fuel.

Channel 5

Regular gas gets more costly

Drivers are feeling more of a pinch this week after the price of regular gasoline rose by 12 cents on the gallon on Sunday. The prices of premium gas and diesel, meanwhile, remain the same.

Pump prices are most expensive in Punta Gorda, where a gallon of regular gasoline is now $12.32, according to sources from King’s Texaco Service Station.

In Belize City, Shell One Stop and Texaco (Belchina), rebranding as Uno, have confirmed that a gallon of regular gas now costs $12.07.

Premium gasoline is approaching $13 a gallon in Belize City, but it has passed that mark in Punta Gorda, where consumers now pay $13.21 on the gallon.

The last major price change was recorded in August 2012.

According to September data from the Statistical Institute of Belize, gas prices increased on average by 9.5% over the span of August to September.

Amandala