August 26th, 2010
According to a report from in the Jamaica Gleaner, Oil prices have now fallen to US$71.63 per barrel. This is certainly good news to Jamaicans . The analyst blame the drop in price on the weak American economy.
However a weak American economy threatens the Jamaican economy as the majority of our tourists come from the USA and significant portions of our trade. Also many Jamaicans also depend on remittances from relatives in the United States of Amercican, Canada and the United Kingdom among other countries.
However, lower oil prices should result in lower electrcity bills. So while motorists might breathe a sigh 0f relief, consider the rest of the economy.
Related
Tags: Gas, Jamaica, Prices
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January 18th, 2010
Jamaica Gas Prices was set up with the idea that persons would share and save. Today that vision remains the same. By taking a few moments to note the prices you pay at the pump and posting that prices you would have shared and helped someone to save.
If everyone shares, we will easily know the best prices and where to get them. If are see prices as you drive along noted them or better yet have someone driving with you note the prices and at a safe time post these at http://jamaicagasprices.com.jm or http://mobile.jamaicagasprices.com.jm/ on your smartphones such as the Blackberry, Nokia, IPhone, HTC and others. You can follow us on twitter at http://twitter.com/jamaicagasprice
Once again we invite people to share. We are committed to bring some new features despite our failures in the past.
We need your participation, share and save in 2010. We will all need each other’s support.
Tags: Gas, Jamaica, Prices
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January 5th, 2010
Prices as seen at the New Kingston Texaco Service Station on January 2, 2010
Starting January 1, 2010, the price of gas products at the pump at Jamaican service stations has risen. This is a result of the new taxes announced by the Government of Jamaica on December 17, 2009 and retained in revised tax package of December 23, 2009. The government hopes to raise JMD $9.4 billion of taxes from this measure.
The resulting effect is that motorist will pay significantly more at the pump. As demonstrated in the previous post, ‘New Gas Tax hits Jamaica‘, the price to motorist will move up no less than $9.00 per litre at this time. A Gleaner/Power 106 news report suggested the price of gas will increase by over $10 per litre.
On the street
When motorists drive around or visit the pumps this week, they will see prices ranging from the high eighties (80s) to the high nineties (90s). With the price of Oil increasing on the world market, expect to see gasoline being sold for as much as JMD $100+ per litre ( JMD $460 per gallon) in the coming weeks.
Sources:
Tags: Gas, Jamaica, Prices
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December 18th, 2009
The new gas tax announced by the government is not straightforward. Hopefully later we will get the details. As of now, the announced measure as it relates to the new gas tax is shown below. It must be noted that this is the second adjustment to Gas Tax in the last eight (8) months.
The announcement
Currently under the GCT ACT, fuel attracts both a specific and advaloreum rate of special consumption tax. It is now proposed that an advalorem rate of 15 % be appliecd as follows.
- Where the fuel is manufactured in Jamaica, the 15% will be applied to the ex-refinery price inclusive of the specific component of the SCT
- Where the fuels is imported into Jamaica the Advalorem rate will applied to the value (CIF value, plus customs duty, plus stamp duty and the specific component of the SCT), as prescribed in the GCT Act
The items to be affected include:
- Motor Spirits including e10/87 e10/90
- Automotive Diesel Oil
- Kerosene (excluding (turbo Jet A1 Fuel)
Basically you have a formula like this
Ex-refinery price after taxes = (Ex-refinery price before tax + Specific component of SCT) + 15% of (Ex-refinery price before tax + Specific component of SCT)
or
Ex-refinery price after taxes = (Ex-refinery price before tax + Specific component of SCT) * 1.15
What is not absolutely clear therefore is how much is this specific component of SCT. For a clue, we go back to April 2009. In April 2009 this was the picture when $8.75 (additional SCT) was added to the ex-refinery price of gas.
April 2009 before Tax Adjustments
Ex-Refinery Before Tax: $44.17
Current Tax: $7.36
Ex-Refinery After Tax: $51.53
April 2009 before Tax Adjustments
Ex-Refinery Before Tax: $44.17
New Tax: $16.11 (7.36 + 8.75)
Ex-Refinery After Tax: $60.28
Now taken the specific component of SCT on E10/90 to be $16.11 the new price could look something like this
January 2010 before Tax Adjustments
Ex-Refinery Before Tax: $44.17
Specific Component of SCT: $16.11 (7.36 + 8.75) (Fixed)
Ad valorem 15% : $9.0321 i.e. (44.17+61.11) x 15% (Variable)
Ex-Refinery After Tax: $69.29
Using the above information as a reference point, the specific component on E10/87. E10/90 and Automotive Diesel are $16.11, $16.48 and $15.42 respectively.
We could be looking at riots come January 2010. The taxi-men will certainly demand and increase.
From a government revenue side, there are some concerns. If the price of OIL collapses to the 40-50 region again, the variable intake will fall.
For the consumer if the price of OIL goes up the variable operation will increase as they will be hit by the increase in OIL price change multiplied by the Variable increase. This in effect could then severely dampen demand and reduce revenues to the government. It also means that for the consumer, the multiplier effect of the increase such as cost of transport of goods and derived product & services, will be greater that it currently is.
Interestingly of all the measures announced, the revenue projected, JMD $9.4 Billion to is only slightly less than the combination of the increase in GCT ($3.6 billion) and removal of some exemptions ($6.2 billion), i.e. JMD $9.8 Billion.
What is certain is that it is tough time ahead for Jamaican motorists and their families.
Tags: GCT, Jamaica, SCT, Tax
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September 15th, 2009
If last week’s Monday morning traffic was bad, this week’s Monday morning traffic was worse. It now appears that school is back out in full and the busy roads are showing it.
What was clear was how impatient the motorists were. The horns were blaring and people were sharp to remind others that the red stoplight was about to turn green. It is amazing how sharp Jamaican Motorists can be when they are ready.
Much of the traffic buildup occurs around schools. It would be interesting if National Works Agency could look into this and see how this could be addressed. Many schools simply do not have adequate entrances or exits and the ripple effect is telling in on the traffic in city Kingston.
Garbage Collection at Peak Hour
What I can’t understand is why would the Jamaican Government have garbage trucks collecting garbage at peak hour. I saw this on Oxford Road in Kingston one day and was surprised. Maybe the garbage truck was running late. I was puzzled as it obviously made a bad situation worse.
Remember to give yourself 10 to 15 minutes of extra time do deal with potential mini-accidents, broken down vehicles and other little incidents that will most certainly cause the traffic to move a little slower
Save Gas
Now how is the motorist suppose to deal with this slow to stand-still traffic and is impact on the gas bill? To avoid burning a bigger hole in pocket, here are some simple options. Does anyone have some more?
- Leave earlier: 30 minutes to 1hour can make a world of a difference.
- Leave later, if you can: If the boss will allow
- Take the bus: Premium fares are down but regular fares are do to go up.
- Get a Motor Cycle: When it rains you get wet.
- Arrange to work at home : Telecommuting welcome to the 21st Century
- Car Pool: Old idea has issues
- Do I hear Flexi-time again?
Tags: Car Pool, Gas prices, Jamaica, Traffic
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