People have been ignoring the ongoing discussions on fuel price increases, while the recent SGS Inspire report speaks plainly and shows that the fuel imported to Curaçao is of poor quality and affects the performance of a large number of vehicles, according to MP for the MFK faction, Ramón Yung. The Council of Ministers in an extraordinary ordinary meeting on Monday, May 8 will have to take a decision on a possible increase in fuel prices. Minister of Economy Mr. Ruisandro Cijntje indicates that the Council of Ministers must choose between the price increase of 16 cents per liter or 29 cents per liter. In the case of opting for a 16-cent discount, this means that the OB charge on fuel will be eliminated at the time of import and only at the time of sale to the consumer will the OB charge. Minister of Finance, Mr. Javier Silvania, for his part, indicates that there is no room to maintain the subscription on fuel price mitigation, as it is not incorporated into the 2023 budget. If you opt for a 16 cents increase, that would mean that all ministries would need to
cut about 1.42 million in their budget to cover a sum of 12.8 million florins that elimination of the OB on fuel imports would produce. MP for the MFK faction, Ramón Yung wonders, “How is it possible that they are discussing raising fuel prices, while in a recent report by SGS Inspire they speak out and confirm that the quality of imported fuel is poor”. MP Ramón Yung is aware that the two points of discussion are completely separate, but the people who have to pay for the increase if they do not understand this. Because once the fuel quality is known, people expect that the first step is to come up with a formula to compensate for the poor quality of the fuel.
The reality is that according to MFK MP Ramón Yung, the results of the SGS Inspire report became public, just when BTP had calculated the price of fuel and indicated that fuel would experience a price increase. For MP Ramón Yung, now more than ever Minister of Economic Affairs Mr. Ruisandro Cijntje should sit down with both Curoil and gas station operators, so that together they can form a position and show solidarity with the people of Curaçao for what is happening.
possible steps to mitigate the impact and possible increase in fuel prices. Because earlier the minister had indicated that in deliberations with Curoil, Curoil should have said that the profit margin on fuel sales should be 25 cents instead of 17 cents and a half, so that they could cover all their operating expenses.
The SGS Inspire report, however, indicates that both Curoil’s revenue from sales in sales and the profit margin obtained by gas stations are substantial profit margins. SGS Inspire textually states that “the margin Curoil is a fixed margin to cover the cost of storage and distribution”.
(including a reasonable profit margin) In the case of the pump owners, SGS also indicates that the dealer margin cover the gas stations operating costs regarding distribution and delivery (including a reasonable profit margin). Previously, it was difficult to get figures for product sales at gas stations, as figures were not provided to the government. But the SGS Inspire report shows that a gas station should have at least 2 tanks for each product they sell, whether it is gasoline or diesel. The tanks have a capacity of between 30,000 and 37,000 litres of product and fill a tank approximately every two days. Any citizen himself can make a mathematical calculation, what the volume of sales and profit of a pump can be monthly, considering that the profit margin on both gasoline and diesel is 17.5 cents per liter.
In the case of Curoil as the only supplier selling fuel at petrol pumps with a profit margin of 11.1 cents per litre of petrol and 10.5 cents per litre of diesel, once again each citizen can make a calculation of what the sales volume at 29 petrol pumps around Curaçao can generate for Curoil.
According to MP Ramón Yung, all stakeholders in the fuel sector should sit down at the table with the SGS Inspire report and put their noses in the same direction, so that the community can benefit from the situation. Because people are screaming and there is no more room to continue screaming and threatening to increase even though the report is about the poor quality of the fuel. Finally, given the poor quality of the fuel, MP Ramón Yung believes that a two-year transition period to reach a better quality fuel is simply unacceptable.