Column: Weeks On Fuel Prices, Costs & More

April 4, 2022

[Opinion column written by MP Michael Weeks]

Last month Premier and Finance Minister David Burt was asked to approve a 5% increase in price for gasoline and a 6.7% increase for diesel for March. He refused to raise the prices and instead ordered a review that will look to see if price reductions can be made in line with the PLP commitments to lowering the cost of living for the people of this country.

Fuel companies are often carrying inventory that is either more or less expensive than the current world fuel prices at any given time. Companies in Bermuda import fuel on average 3 to 4 times a year, often resulting in the cost of their inventory differing from the global fuel prices even when there is a significant change in international pricing.

During the first 2 months of the year, fuel companies were carrying less expensive inventory, given that global fuel prices have increased recently due to the war in Ukraine.

Acting on our longstanding practice of working with industry partners, Ministry of Finance representatives spoke with fuel company stakeholders who indicated their support for Premier Burt’s decision to freeze fuel prices temporarily. Fuel suppliers and the Ministry of Finance have committed to further meetings to analyze necessary changes to the current pricing model to ensure that Bermuda’s fuel supply is stable, but also to ensure that consumers are paying the lowest possible price.

On February 25, the PLP’s Budget promised: “more relief to come”. In that statement, the Premier and Party Leader stated that 50% of any excess revenue that is received by the Government will be returned to residents in the form of tax cuts on energy to reduce the cost of living. We are mindful of the high cost of energy and fuel in Bermuda and the impact it has on families and businesses. The PLP has taken action and will continue to take action and provide more relief for Bermudians.

The bottom line is that fuel companies can afford this price freeze without significant operational impact, whereas hardworking Bermudians cannot afford the burden of paying more and more for both gas and diesel.

Rest assured, your PLP Government is determined to provide tangible, practical financial relief for the people of this country through legislation and policies designed to strengthen and support both our people and the economy.

Learn more about all the ways the PLP has reduced the cost-of-living here

- MP Michael Weeks – Constituency 16 – Pembroke East Central

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