Fuel not likely to go down, but one Grocer says his prices will

Caicos Oil & Sam’s Club open up about the Government’s Fuel & Food Tax Break set to take effect April 1

By Dana Malcolm

Staff Writer

#TurksandCaicos, March 24, 2022 – With SEVEN days until the legislation approving the Food and Fuel Tax Break set to come into effect some business owners, had on Tuesday said, they had yet to hear from the government to work out a plan in order to pass on those savings to consumers.

The government admitted during a press conference announcing the $15 million dollar tax break last week that there had not yet been any meetings with business owners.

Caicos Oil is a leading fuel supplier in Turks and Caicos, we asked the company what kinds of savings Consumers would notice at the pumps come April 1.

“I very much doubt you will see any change at the pumps because the cost of fuel increases 2-3 times per day in some cases, in addition to that, transportation of cost of the Fuel are rising as well…….  to Truck the Fuel in respective countries to the Ports topped by the increase Ocean Freight Transportation makes it no easier on consumers.” Says McAllister ‘Piper’ Hanchell, Managing Director of Caicos Oil.

The cost of oil per barrel today (March 24) is $112 USD.  A week ago, it was $102.  During the course of the day, the price has changed an innumerable number of times ranging from $111 to $114 per barrel; all in a 16 hour window.

Hanchell, earlier in the week informed his company had not had any talks with the government noting that he learned about the tax breaks the same way the rest of the TCI did; in a National Press Conference held on March 22.

“It is my understanding from what I have read in the public domain that there is a plan to reduce the road user tax by $0.21 cents per US gallon.” he said.

“In addition to 2.5 per cent of the value of the fuel which equates to $0.08 to $0.10 per US gallon, overall from the government’s perspective they are lowering the costs to about $0.29 to $0.31.” The businessman explained.

Hanchell says this means that it  is likely that the customers will not see a decrease at the pumps, but he does have a suggestion.

“The 8.5 per cent Road User Tax gives the government anywhere from $1.60 – $1.70 for Gasoline and $1.22 – $1.32 in taxes for Diesel.

What the government should consider is dropping the entire Road user tax of $0.85 per U.S. gallon for a period of time in order to provide some real relief to consumers,” he continued.

“The Road user tax was implemented by the Michael Misick Administration at $0.25 per US Gallon for the sole purpose of creating a segregated fund for road building across the nation…. since then the $0.25 cents per U.S. gallon has increased to $0.85 cents as a consolidated revenue item.”

While it seems relief at the gas pumps will not be had by the motoring public, at least one grocer says he can offer a clear cut path to seeing savings on food and other home supplies.

Gus Karagiannis, the owner of Sam’s Club Wholesale on Leeward highway in Provo has a plan to help shoppers save.

Gus, as he is affectionately called by islanders explained that a 3 per cent discount was easy enough to apply and that is what he will do, give shoppers at Sam’s Club, three per cent off at the cash register.

“For the past six months people have been shopping at the Sam’s Club store and saving money. And I will continue to do my best to keep prices low.” He vowed.

The discount should push already competitive prices at the warehouse style store even lower; a balm as residents struggle against inflation and the disappointing news that fuel prices are less likely to fall due to the cost of oil in the open market.