Fuel prices jump 15 percent in one year
Fuel prices have reached a new high, with gas up to $2.15 per litre a rise of 15 percent since April 2010.The United Bermuda Party yesterday called for Government to reverse its recent cuts in ferries and buses so people can save money using public transport instead of their own.Prices released by the Finance Ministry show gasoline has gone up 9.5 cents per litre as of April 15, the latest in a succession of increases taking it to a maximum $2.15 per litre. A year ago, the maximum gas price was $1.86 per litre. Diesel has gone up 5.4 cents per litre to a maximum $1.95 per litre; kerosene has gone up 4.7 cents per litre to a maximum $1.68 per litre.Reacting yesterday, Deputy UBP leader Trevor Moniz said: “This highlights the need for more availability of public transportation: buses and ferries.“Government have got to get that sorted out. The priority should be maintaining the public services we've got, not cutting them back. We are in a deep recession and it's getting worse. Government has got to try to minimise the expenses for people.”Earlier this week, the Pink ferry route, servicing Hamilton, Paget and Warwick, was cut from 24 trips per day to 13; the Green route between Hamilton and Rockaway went from 13 times a day to eight; and the Orange route from St George's to Dockyard and Hamilton was cut entirely.Transport Minister Terry Lister has said talks are underway with entrepreneurs who could fill the gap, but the UBP complains regular ferry users are being left in the lurch in the meantime. Meanwhile bus users have expressed anger at cutbacks in recent weeks, with Mr Lister saying cancellations have been forced by drivers' bogus sick leave.The Department of Transport had its budget reduced by $1.3 million earlier this year, down seven percent on 2010/11; the Department of Marine and Ports had its budget cut by more than 20 percent from $9.9 million to $7.6 million.Premier and Finance Minister Paula Cox made widespread cuts in her budget, saying all departments would have to do more with less.Mr Moniz argued yesterday: “I don't like these cuts across the board. You have to analyse things and see where you can make cuts, and where you need to keep services. Government has so far failed to do that.”Butterfield & Vallis president Jim Butterfield said the soaring price of fuel is “scary” for companies in the retail industry.“It affects what we do in a big way,” said Mr Butterfield.He said his firm has cut the number of trips it makes to Dockyard every day from two to one, but pointed out this had a side effect of making it more efficient.“As a business we have to be so much better organised and methodical,” he said. “It's no good getting to Dockyard and then finding out you need to bring something else. We only make one trip now, so we have to get it right the first time.”
Wholesaler Jim Butterfield yesterday spelled out the slim chances of a price freeze on essential goods, saying: “The only place you could do that is Russia.”
Mr Butterfield says Butterfield & Vallis is continuing to face rising importing costs, as well as labour and other expenses, meaning prices are forced up accordingly. He said he's willing to meet Bermuda Public Services Union to discuss its call for Government to impose a price freeze on all essential goods and services, but warned the union not to get its hopes up.
Customers maintain the ability to shop around for the best deal, he said, while the best way to get Bermuda's economy back on track is to revitalise tourism.
“In the perfect world, we would all like to freeze prices,” Mr Butterfield told The Royal Gazette.
“If we could freeze the prices of the products we bring in, that would be nice. If we could freeze the prices of freight and fuel, that would be nice. If we could freeze insurance, that would be nice. If we could freeze Belco prices, that would be nice. I would be delighted.
“But I think the only place you could do all that is Russia. With a free market price system, you can't.”
About 600 BPSU members marched on Cabinet on Tuesday morning in a row over pay.
One of their main objectives was that Government does it all it can to make essential foods and services more affordable.
Mr Butterfield said shoppers at least have the consolation of being able to choose where to buy goods.
“We compete with each other each and every day,” he said. “There's nothing we do that we do alone. That means we have competitive prices on poultry, fish, meat and paper. If you don't like our prices, you can go to another distributor and say, 'I don't like your price, I like his price.'”
He said Government is also in a Catch 22 situation.
“If Government forgo duty rates on food, they don't have the revenue to support the people they support,” he said.
“It's very difficult, in this kind of economy, to turn to Government and say, 'what can you do?'
“But we can get some visitors back. That's one way to help deal with those that are struggling. We are sending people away from the Island.
“The village is smaller and our sales in the retail trade are less. Get our hotels sold and the pressure will start to drop off.”
The union wants a three-way meeting with Premier Paula Cox and the private sector when Ms Cox returns from the Royal Wedding in London.
Mr Butterfield said: “I would be happy to sit with some of those people who are saying a price freeze is what they want.
“What they want and what we are able to deliver are different things. 'Let's freeze everything for the next two years'? Who could agree to that? But I will be happy to acknowledge what they want to say and share the understanding.”
