Small shipment blamed for diesel price rise – but tax has gone up too

A ten per cent rise in the price of a litre of diesel is partly due to prices overseas, according to Governor Mark Capes.

But more than half the 12 pence increase reflects a rise in customs duty.

In his report of the latest Executive Council meeting, Mr Capes says: “The increase was due in part to the US dollar price of fuel increasing and also to the relatively small shipment of fuel on 8 May, which resulted in a higher average delivery cost per litre.”

In fact, a press release issued by St Helena Government (SHG) on 17 May reported that customs duty on a litre of diesel had risen from 10p to 17p – accounting for just over half of the increase at the pumps.

A litre of diesel now costs £1.25.

The duty on petrol has fallen by four pence, but the price at the pumps has stayed the same at £1.52 per litre.

SHG says fuel prices will be reviewed again after the next tanker delivery, expected in August.

COMMENT:

When fuel prices rise everyone thinks about their private car, but there is also a big impact on businesses.  Plant and machinery also use fuel.  So, in part, this is a tax increase on doing business here.  Many businesses here already struggle.  For some could this be the final straw?

John Turner, St Helena
Burgh House business solutions

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LINK:
St Helena Government