Paulwell calls for removal of oil hedge levy

Opposition Spokesman on Energy Phillip Paulwell says that the announcement by PetroJam of the record-breaking increases on petroleum products a day Emancipation Day is unprecedented and unconscionable.

Gas prices went up by $2.60 today.

All other petroleum prices also increased, including automotive diesel oil which moved up by $2.85 per litre and kerosene which went up by $4.08.

In a statement, Paulwell repeated his call for the government to remove the hedge levy to ease the pressure on motorists.

A tax was imposed on fuel to allow the government to fund an oil hedge.

The hedge has been discontinued but the tax remains.

Paulwell argued that there is no need for the government to collect the hedge levy because it has long abandoned the hedge protection against oil price increases, which was implemented by the last People's National Party administration to protect the nation in the event that oil price instability returned to the market, sending the cost of oil at the pumps to record high levels.
 
" It is in the government’s hands to remove the levy and spare the public the burden of the increases being announced by PetroJam on a weekly basis.

" The government has been short-sighted in its approach to global issues and the movement of oil in the sector and has exposed the country to the unexpected shocks of increases per barrel of crude oil," Paulwell said.

The energy spokesman said as long as there is instability in the Gulf region and the unsettled conflicts among key oil-producing countries, the price of oil will remain uncertain. 

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