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Auto
September 15, 2011

Truck drivers call for rollback of diesel price

TRUCK drivers have knocked Petrojam for its ongoing policy of pricing diesel, the lowest grade of automotive fuel, higher than gasoline.

At the same time the drivers are calling for a removal of the ad-valorem tax on the fuel, which they say drives the transport and haulage industries.

“Jamaica is one of the few places in the world where the cost of diesel is above the cost of gasoline,” contended Judy Sharpe, a member of the newly formed group, All Island Truckers Association (AITA). “The situation has become even more untenable as whereas world oil prices have trended downward, and gasoline has seen slight price decreases, diesel price still remains higher here,” she added.

According to Sharpe, policymakers have long overlooked the haulage industry, which she argued played a critical role in the island’s commerce.

Sharpe said that truckers saw the critical need to speak in one voice earlier this year when government increased carriage licence on truckers from $11,500 to $20,000.

“A number of truckers came together to tackle government about the fee and the result was a reduction to $14,000,” Sharpe told Auto.

“Out of this came the fact that there is strength in unity and the association was formed,” she added.

The truckers now hope that their unified voice will influence Petrojam, the island’s sole refinery, as well as government regarding the pricing of diesel fuel.

“The cost of diesel fuel affects the price of every commodity being transported,” argued Sharpe, who added that increasing haulage fees to their customers would push up the prices of products to consumers. “Increasing the trucking fees is not an option right now,” said Sharpe “We are aware of the impact it would have on inflation.”

She further declared that the current pricing of diesel was counterproductive and pushing many truckers out of business.

“It is unfair for this sector to be taxed when concessions are given in other areas,” she insisted. “The haulage sector has received no concession, we have received absolutely none,” she emphasised.

According to Sharpe, the percentage of fuel as a part of haulage operation has moved from 35 per cent to 60 per cent and above in less than a year. “It is a dying sector and the death as a result of cost of fuel,” Sharpe remarked yesterday.

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