Staff Writer

#TurksandCaicos, August  5, 2023 – Fuel Factor Rates in the Turks and Caicos Islands continue to decrease, taking some of the energy burden off of consumers; similarly, gas prices are going down.

Fortis TCI made the fuel factor announcement via their Facebook page recently, indicating rates had decreased by 10.42 percent in July.

Residents in the Turks and Caicos became even better acquainted with their fuel factor rates than usual last year when the rising fuel costs globally resulted in skyrocketing bills.  The continued decline is a welcome relief for residents.

“Factors that influence your electricity costs include the amount of energy you consume every month and the price of fuel,” Fortis reminded.  “The fuel factor rate on July’s electricity bill for Providenciales, North Caicos, and Middle Caicos customers has decreased by 10.42 percent from the prior month’s $0.1986 to $0.1779 per kilowatt hour (“kWh”).  Grand Turk and Salt Cay customers’ fuel factor rates also reflect a significant decline, with a 9.4 percent reduction from the prior month’s $0.2019 to $ 0.1829 per kWh.  This month’s fuel factor rate for South Caicos will become available soon.  It is worth noting that South Caicos fuel factor rate for last month (June) decreased by 8 percent from the prior month’s $0.2109 to $0.1941 per kWh,” the company indicated.

The cost of oil has continued to fall globally, affecting not just energy but gasoline as well.  A look at the July fuel prices across the Turks and Caicos reveals that Providenciales residents are now paying less than they did in March 2022, before the inflation spike, as has become the trend in the last several months.  The cheapest stations were grants on Leeward Highway and K&T Gas Station (Regular Gas) and Caicos Oil (Diesel).

In Grand Turk, prices were still higher than in March 2022 for the most part.  The cheapest stations were Sunset Marina  (Ed Dickenson Gas Ltd.) at $6.50 and Fulford Gas Station (Alonzo Malcolm Gas Station) at $7.10.  In North Caicos, of the three stations, Core Resources was cheapest at $ 6.99 per gallon.

South Caicos residents have seen no change in fuel prices and continue to pay $11 per gallon for gas.

Staff Writer

#TurksandCaicos, December 13, 2022 – Regular Gas prices in the Turks and Caicos are at their lowest in nine months only cents away from March prices in most cases according to the Turks and Caicos Islands Government.

The Government recently released its December fuel report as part of the Food and Fuel Tax Break.  The highest price in Providenciales was $7.00 at Shell stations compared to $7.87 in September.

Unfortunately prices for Diesel remained above March rates.

The three most expensive gas stations to purchase regular gas from were Shell downtown and both Shell stations on Leeward Highway. The most expensive for diesel were Rubis Downtown, Rubis S, Walkin Marina, Rubis Irvco and Rubis in Five Cays.

In contrast the three least expensive stations to purchase Regular Gas from were Smith Co; K&T Gas and Grant’s Leeward Highway.  The most cost effective for diesel were Smith Co; Caicos Oil; Airport Express and Grant’s on Leeward Highway.

Salt Cay, prices fell as low as they had been in May after major increases in September, showed the report.

In Grand Turk the gap between March prices and December prices was larger than Provo but still contracted.

The most expensive gas stations (in the capital) to purchase Regular Gas from were Williams Motor Mart and Durham Gas Station (Lulu). The two most expensive for diesel were Durham and GT Petrol

In contrast the least expensive stations for regular gas were Sunset Marina and Franklin Missick Gas Station. The least expensive for diesel: Sunset Marina and GT.

In North Caicos, of the three Gas Stations the most expensive was B&B Service Station.

Coming in with the lowest price per gallon was Core Resources.

Finally in South Caicos the most expensive gas station for diesel and regular gas was once again Seaview Marina compared to the cheapest at South Caicos Fuel Market.

Providers have reached out to Magnetic Media in the past to explain that the quality of the gas being pumped may also affect the price. Residents must then do their own due diligence to find out which gas from which providers performs best in their vehicles at which price point.

Editor

#TurksandCaicos, April 15, 2022 – TCI Government will have to accelerate its reassessment plans when it comes to the $15 million Food and Fuel Tax Break because currently the drop in Customs Processing Fee (CPF) is only giving consumers pennies, if anything, in savings on grocery items. The reason, a rocketing inflation rate.

Prices on goods around the world are escalating rapidly and making matters worse, shipping costs are also marked up; not good for the Turks and Caicos which is heavily dependent upon imports.

GROCERIES 

Since the start of April, shippers have been passing along the higher costs of doing business.  Staple food items are more expensive and scarce.  Magnetic Media observed empty shelves in several popular grocery stores in the Turks and Caicos; it was extremely concerning.

“It is still very difficult getting products in; we are trying,” explained a produce manager.

The current 2.5 per cent break on the CPF, is working but only to soften the blow on constantly rising levels of inflation; it means the government will have to go back to the drawing board.

Covid-19, shipping delays, lockdowns, quarantine orders, anti-vaccine protests, even the US stimulus to citizens which is financing extreme shopping are all blamed for the inflation; a perfect storm of events which has brought this pressure upon households now having to take on unbearable financial burdens and the Turks and Caicos is no exception.

The Russian-led war on the Ukraine has exacerbated the predicament.

We visited Sunny Foods store, with four grocery outlets in Provo and Grand Turk, where the decision has been to put the regular price and the reduced price on the same sticker.  With the CPF applied, shoppers are saving only between one and four cents on popular grocery items.

Graceway Supermarkets decided to apply the CPF tax break on everything at the start of April; the company which owns three grocery stores in Providenciales and one food store in Grand Turk, informed that changes on price tags will come later, the savings will reflect at the cash register for now.

Sam’s Club in Providenciales is dropping prices by three per cent across the board at the register.  Gus, the owner, is prepared to take a loss in order to simplify the process and attract shoppers.

P&K Spendless Supermarkets said their new stock will reflect the CPF discount, but no new stock is in store as yet.

Our news organization has been informed there has been no engagement by the Government with most of these food stores.

We are also told that every day, notices are coming from suppliers about increases in costs on the popular goods.  Meanwhile, the rising cost of living signals that it is time for workers to get a raise.

Government has been able to tap into the public purse to augment salaries and other public service payouts by $30 million this fiscal year.  The private sector has no such luxury.

National Insurance Board payments have increased since the start of April; another cost factor which is neutralizing the impact of the Government’s $500 Inflation Stimulus and the Food & Fuel Tax Break.

The recommendation from the grocers, when Magnetic Media quizzed them about a possible solution: ‘for a few months, as was done during the height of the Coronavirus Pandemic, drop the duty completely on bread basket items.

ELECTRICITY 

There will be no reprieve in electricity bills either; FortisTCI has delivered a three pronged message namely: the company’s efforts to become less fuel dependent; consumer advice encouraging energy conservation and the inescapable reality of surging oil prices which have now topped $100 per barrel.

The TCI’s electricity provider explained despite negotiations for better fuel rates, its supplier, Sun Oil has communicated that the Ukraine crisis will continue to drive up, oil prices.

“We have certainly been in discussions with our supplier and they do have inventory that is currently on hand, that does have the full Customs Processing Fee, CPF included already that has to be exhausted before that reduced Customs Processing Fee is then passed on to FortisTCI, which will flow through the customer bills,” said Aisha Laporte, VP of Finance at FortisTCI during an April 8 episode of Expressions radio show which is hosted by Robert Hall.  “…but from the projections that we have we are expected to the see the reduction in the customs processing fee by May.

But I also want to say Mr. Hall, while that 2.5 per cent customs processing fee will be reflected, we’re also seeing an even larger marginal increase on just the cost of fuel. So that will outweigh the reduction from the savings on the Customs Processing Fee.”

FUEL 

The report is equally as grim from TCI fuel suppliers.

McAllister Hanchell is Managing Director at Caicos Oil and he communicated early on, that fuel prices are fluctuating so rapidly, it was likely any small reduction would impact prices at the gas pumps.

Hanchell said oil prices are fluctuating, two to three per day in some cases.

This means though the government has come up with a tax break on the customs processing fee and the government’s fuel tax on gas sold at the pumps, it will have no bearing on the cost of the commodity on the open market, or the shipping fees which are also impacted by the pandemic and the conflict in the Ukraine.

Hanchell believes the 85 cents per gallon TCI Government collects on fuel, should be temporarily suspended.

SHIPPING 

SEACOR has conveyed three significant rate increases since the start of April.  On April 4th the shipping charges were raised due the surge in oil costs per barrel from around $80 to now over $100.  Last week, an inland surcharge was passed onto the company; a new fee for shippers out of South Florida related to ground handling and that has resulted in higher charges on imports.

South Florida will apply a 20 per cent inland surcharge for all north and southbound shipments from Miami Dade County, Broward County and Ft Lauderdale.

On April 10, this notice came to SeaCor’s local link, AlServices Ltd:  “Please note, effective Sunday, May 1, 2022, the below General Rate Increase (GRI) on the Ocean Freight charge will be applicable on all shipments to/from the United States and Turks & Caicos…”

The month of May is also when Cargo Express and Tropical Shipping will begin to charge more for its transport services.  From Carl Simmons, Director there was this response to our queries on the kind of cost adjustments were pending:

“Tropical Shipping/Cargo Express Services can confirm that since the war began in Ukraine there has been an increase in Fuel costs that has impacted the costs of Shipping and Trucking to the Turks and Caicos Islands and other parts of the Caribbean. These increases would obviously be passed onto the customers and will ultimately impact consumers.

As of May 1^st, 2022, Cargo Express Services will increase Trucking for Containerized cargo by $50.00 to all its Turks and Caicos customers; mainly due to the rise in fuel costs and replacement parts.”

Government’s around the world are powerless to control the cost of goods, supply chain issues, and despite harsh sanctions Russia continues its deadly, militant incursion of the Ukraine – the only solution is a reduction in government imposed taxes, which Consumers say are happening far too slow and offering cuts which are way too meager.

Meanwhile, since their March 15 national press conference, the TCI Government has issued no statement on the rolling issue.

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.