PSV drivers to gain from nine cent cut

Operators of public service vehicles (PSVs) are to benefit from a nine cent per litre reduction in the price of diesel purchased from Sol (Barbados) Ltd by next month.

Director of Trade Advisory Services, Judy Forde, made this disclosure today after Government discontinued the supply of subsidised diesel to PSVs.

“It would mean significant savings for the industry. When we enjoyed the Government subsidy it was eight cents plus 20 cents excise tax that brought it to 28 cents. Nobody has any control over the excise tax because it is imposed by Government,” she told Barbados TODAY.

“Two years ago the PSVs were using 200 000 litres of diesel per week and I believe it is more now. A route taxi uses about 50 to 60 litres per week, while the bigger minibus uses much more. The minibuses probably use about $400 in diesel per day and diesel is $2.87 per litre. All PSVs will benefit from the concession.”

Forde said that during Sunday’s meeting at the Barbados Community College where the details of the plan were disclosed, representatives of three business houses also expressed an interest in offering discounts to the industry.

When asked if she has pulled members away from the Association of Public Transport Operators (APTO) which had also been lobbying for an ease for PSVs, Forde said that body was still struggling with its membership and it was difficult to get owners to come together.

“APTO or any organisation must show its members what it is doing for them,” she said.

Forde said her organisation was trying to eliminate barriers to trade and recalled that it was instrumental in negotiating an arrangement between the Customs Department and used car dealers.


One Response to PSV drivers to gain from nine cent cut

  1. Wayne T Griffith
    Wayne T Griffith May 13, 2014 at 11:02 am

    Is it a 9% or a 9 cent per litre cut? The story and caption are contradictory


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