Dominica’s Director of Trade has defended the recent hike in fuel prices in the country and insists that the government is doing its best to render the fairest price for petroleum products by using an “excellent” formula for calculating gas prices.
Although the price of gasoline is higher than it has ever been on island since December 2014, Mathan Walter noted that countries such as St. Kitts and Nevis have higher gas prices; reaching up to $16.10, above the $US5 in the US.
“If we are paying $14.98 in Dominica… we should be saying that the government is doing its very best to render the fairest price for petroleum products in Dominica at the moment,” he said during a DBS radio programme on Tuesday.
“The way that we calculate the price of petroleum products in Dominica is based on postings,” Walter explained.” There is a company that the government pays to provide fuel postings or the daily prices for petroleum products. Every 3 o’clock they offer a final price and we record that price over a four-week period.”
He said on the fourth week the ministry does an average which becomes the price of that particular product at that time which is part of a cycle that they have used over a number of years to calculate the price petroleum products.
The trade official pointed out that it is not a situation where there is old and new stock as, every month, the prices are calculated on a daily basis, averaged and placed into a “price build-up” which includes the landing cost of the product, the retail price, the government related taxes and “then that particular price…spits out the price of the product for that particular regulatory cycle.”
“It is not a random exercise. It is not an exercise where, because the price has gone up as a result of the war, that it is immediately being applied. The price changes on a daily basis and people have to understand that petroleum products are a global commodity,” Walter stated. “The prices are globally decided based on the markets and so, whatever the barrel of oil is on a particular day, this is recognized and noted by the Ministry of Trade and we do a five-week cycle.”
The cycle consists of four weeks of calculation and one week for the cabinet decision.
“In relation to the issue of whether the consumers are involved either in the activities that are ongoing at the ministry of trade is part of, of course. We cannot do anything from sitting at the back of a desk. We need those stakeholders who are practically impacted by any of the different areas that we’ll be dealing with.”
According to him the ministry always reaches out to consumers and the private sector and added that “every one of us is a consumer”.
Dominican, Anderson Jolly is a consumer and a businessman and he believes it is grossly unfair to compare fuel prices in Dominica with countries such as St. Kitts and Nevis and the United States where he says salaries and wages are much higher.
“You know, I go buy for $5000.00 US [in America], it costs me $5000 US,” Jolly said on a Q95 programme. “I buy a car for $5000 US and bring to Dominica, it costs me $60,000 EC.”
Jolly describes the formula used by the government in calculating fuel prices as a mere matrix which is not accurate.
Dr. Thompson Fontaine, Dominican economist and financial consultant now working in South Sudan, also believes that the formula which the government uses to determine fuel prices is flawed and needs to be revisited.
“The pocket that the retailers make on the petrol import, should be a factor of what they import, the prices they pay for importing; that is what it should be on” Dr. Fontaine said on Q95. “It should not be based on the world market prices.”
He contends that to apply the formula to a shipment that’s already in Dominica is flawed and believes that the government needs to take another look at it and adjust it accordingly.
The former IMF economist maintains that should be greater certainty as for retailers. He says the retailers should know that whatever product is imported, they should have a steady profit and should not be at the mercy of a fluctuating and very highly speculative world market price.
Dr. Fontaine also further noted that the government would be taking some of the burden off the consumer by absorbing some of the taxes on the price of fuel.
When questioned by Dominica News Online (DNO), Trade Director Walter revealed that VAT is not recognized or reflected in the price build up for fuel.
A few questions:
1. What happened to the petrol deal that we had with Venezuela/Petro Caribe?
2. Why does the price of gas in Dominica have to fluctuate with the daily price of petroleum on the world market? We are not active traders dealing in crude oil futures etc.
3. Why does the Ministry of Trade not use the basic inventory pricing method of FIFO (First in First Out)?
Seems to me the government is introducing unnecessary complications in pricing gasoline.
Presumably Maduro was so pissed of with Skerrit for having to write off almost US$ 100 million of PetroCaribe money, that he has no further appetite to deal again with Dominica. You see, Skerrit blemishes our good name everywhere he goes on ‘our behalf’. He upset the EU, he upset the US, he upset Venezuela, he upset Taiwan, he upset Mexico…
Dr Fountaine’ s analysis is correct. It means that the dealers are making a windfall by charging current global prices for old inventory. Ans when the global price go down they further justify their sloth in brining down prices saying that their costs are high.
To compare the gas prices in other Caribbean islands and even the USA is TOTAL NONSENSE, they pay MUCH HIGHER in those countries when compared to Dominica. Dominica has one of the lowest pay rates in the Caribbean so come out there with fair prices nonsense
Dollar for Dollar, we are all suffering. Gas is high right here in America. I have to spend $60.00 to fill up my tank today. Before the war in Ukraine, $25.00 would fill up my tank. So, what is your point? Stop playing politics and blame the Government for everything bad that happens. Skerrit will not be defeated, not at the pump, not at the ballots. You all UWPites make me sick everyday. Everything is politics. Don’t you have anything better to do with your life? Go find another job to augment your monthly paycheck. Make it two jobs. Most people in America are working two, three jobs to make ends meet. Fontaine just gushing water from his mouth because where he is working in Africa it is the Government filling his tank up. He spends not a cent on gas.
What does “ds” stand for? Not what comes to mind after reading this comment, which is obviously from someone with the IQ of a bovine. What does “dollar for Dollar” mean by the way? Why don’t you give me 1000USD and I give you 100,000GUY? My advice: Please try and keep your ignorance a secret.
You are so intelligent that I wish you knew what I meant by dollar for dollar. And don’t think Dominica is the only country hurting at the pump. All countries are hurting at the pump right now, Mr. Smart. I live in America and I am hurting. Everybody is hurting.
DS (Dunce Soul), everybody is not hurting. That’s A false assertion. Dr. Dr. Skerrit, his family and members of his kleptocracy are living champagne and red-carpet lifestyles. They are having the best time of their lives while most others in Dominica are experiencing hell.
You, DS, are experiencing hard times in the U.S. because of your welfare status. Go look wuk as jobs are going aplenty in America until Dominica.
Oh no a measly $60.00 cry me a river. Did I mention politics anywhere? I’m speaking facts, lol. If you have to work multiple jobs in the US of A you’re not doing something right,
DS or BS whatever your name is , please ask the DOT what amount of taxes are collected on every Gallon?
That’s the only question I have.
One day that bubble must burst!
You left us in dominica and ran to greener pastures. You are in no position to decide for us who are here what is good or not. While you pay tax for another country we are the ones who struggle in dominica. Therefore keep your opinion to yourself and let us in dominica who feel the heat decide what is best for us.
Best you go by the pump and wash your mouth with some gas seeing how you find what Mr fountaine is saying doesn’t make sense. Ds? Damn Stupid!
You need to understand Dominica employees get paid the least.
And we have the lowest pay too, second to Haiti.
Come on Fontaine, stop playing politics and stop dancing to the drum beat of Lennox Linton and the UWP apparatus. Don’t you know that there is an unending war going on between Russia and Ukraine and the NATO countries including America which has impacted the price of a gallon of gas among other things in the world? Stop being a nuisance and act intelligently. What kind of Economist are you? Everybody around the world is feeling the pain at the pump and the grocery stores. Stop pandering to people’s bulls…. Even you think you can fix it, then fix it. It is not because you don’t like the Government that you must act so stupidly and with no sense at all.
Miss/Mr. ds, you know you are in no position to suggest Thomson is playing politics!
In the first place Walter is not in Fountains class academically, not intellectually!
To suggest Thomson playing politics is total nonsense, this mans ability and skills is badly needed in Dominica; he taught economics in a university in the United States, if he was a nobody, he would not have served in the World Bank, or another such institution: research that!
If you know anything about Dominica Thomson Fountain you might remember, he was called upon to go to Africa, and help in the creation and setting up a government and new country; and that is the kind of brain power our ignorant people rejected for people who’s ambition is to sell passports to run a Dominica.
Roosevelt Skerrit, and all the puppets like Walter he manipulates on his fingers combine their brain cannot come close to Thomson Fountain.
Finally, Fountain Ph. D was not bought, he earned it from a university!
You that ds, there if you are so contented with the crap that is going on in Dominica, if you support corruption, thievery and victimization and the poverty Roosevelt brought on our people, how come you seem to be in America talking about you pay $60.00 to fill your tank with gas.
Why the crap you don’t go back to Roosevelt Dominica; and suck salt!
Hahahahahahahahahahahahah!
ds, let me tell you something, I don’t know what sort of care you drive, in any event, that amount of money, tells me you were running on empty.
Hahahahahahahahahahahahahahah!
From the suburbs where I have one residence, to metropolitan Los Angeles, where I have another is 107 miles apart, I burn less than half a tank of gas on a turn-around. I can come to Los Angles four times on a tank of before I fill up.
And I talking about driving some high profile AMG Mercedes Benz Turbo Charge super sports; high powered Corvette, and Camaro, all going 220 MPH.
It is not a question of how much gas you burn; all I am saying is that before the war to fill up my tank it would cost me $25.00. Now, since the war I would pay $60.00 to fill up my tank if I have to fill up my tank. And for your information, I am driving a Rolls Royce. Can I buy you one?
You are a big shot driving high powered vehicles and I in America driving a jalopy burning gas. Send me some money for heavens sake, please.
Anyway, you seem to be humorous, too, but understand anytime there is a crisis prices of everything escalates.
Bedsides the world has changed, and continue to change, housing is expensive, medicine and all; when I came here in May of 1980.
Someone took me to Las Vegas, I went to have dinner at a Buffet, where one is allowed to get up as many times and eat all their belly could accommodate, you may be shocked to hear I only had to pay fifty ($0.50) cents for all I could eat.
Many years passed, the last time I went, I had to pay more than forty dollars, to eat the same amount! We never paid for parking at any Casino, be it Valet, or other public parking on hotel property, these days we pay for parking, and that is why I stopped going to gamble in Vegas, because I cheap you see (I doh want to pay for that and their food too expensive) now.
As salaries increase ds, rent and Mortgages are getting more outrageously high!
Right, the minimum wage if fifteen ($15.00) dollars per hour, and people are having difficulties attracting people, even Wall Mart have decided to decided to their minimum wage workers $15.50. Those are unskilled workers, so you can imagine how much skilled workers are demanding.
The price of Gas will drop; we been through similar situations in the past; fortunate for us, in California the State is about to issue a four ($400.00) dollar check to all living here to assist in filling up their tank with gasoline, I think my four hundred will end up in Dominica; to help one of the unfortunate I help from time.
Any unless you lie. and say to living in America, if you are any place on the West Cost, you are invited to visit with me anytime.
You know allyou so lie, can’t be trusted you know!
Hahahahahahahahahahahahah
Lin Clown say him is American military; him lie!
Francisco, stop showing off so man like aboasterkakachess.
I am not a show off: praise God for the privilege he afforded me, to live comfortable, and able to help others. If I was complaining how life is hard with me you would be singing another tune.
I don’t boast, I am just a guy who most of the time talk thinks which I should keep to myself ok!
Hahahahahahahahahahahaha!
Perhaps I doh know when to stop talking eh!
Telemaque you are one shyster! Mercedes AMG, Corvette and 2 residences in LA. OMG! You can not even drive a pedal car nor afford a bicycle. Get out of here.
A King is superior to a prince, princes of queen!
Hence since I was born the King of Wesley you are beneath me, in subjection to me: How can you run your mouth off on me when you do not know me?
Talking fart, the last time I was in Wesley, the only people who recognized me were my immediate siblings, as all my parents are dead!
Talking crap about me cannot help you; I enjoy a successful life; I am very happy with my success granted to me by God, himself, and nothing any low life rat said can change that.
If you think you are above me financially, go to a dealership in Dominica, or America, or Germany from where mine is imported; and buy yourself a Mercedes Benz C63 AMG supper-sports V8 Twin Turbo Charge, and see if you can afford one.
Every Car, I possess, sit into and drive cost over a hundred thousand dollars!
And I pay cash for them all!
Bite your tongue!
E-Dods, you are an old man that can not even work properly anymore. MB AMG, my behind! Stop bragging on here.
Here is what will stop you little rats from being jealous of me:
I Francisco poor; I doh have nothing to eat; I on welfare in America, running from immigration, I doh have no decent place to live I doh have any legal statuas in America.
I walking without shoe on my feet, and I on de side of de street cover up under plastic bag in de cold eh!
I calling doctor Punjab Roosevelt Skerrit fu help eh!
If I was in Dominica, me life would be better, I going home tomorrow as soon as Roosevelt send me that free Dominica passport money eh!
Nobody is jealous. It’s just jarring to have a prat like you showing off day in day out on here. Let me tell you something, people with money do not show off nor do they talk about it. They just enjoy it. You are also a notorious know it all. You know what, you are just full of crap and a jack of all trades and master of none. Now put this in your pipe and smoke it and sit under the stairs and be a good boy.
Thanks for being so honest for once. See, it did not hurt.
Ask Athie Martin who Fontaine is. When he was at the IMF he was just repeating in Dominica what his bosses tell him to say. That is all you all play, politics. As long as it concerns Skerrit, here you all go again. He did not teach Economics at a university in America and he worked at the IMF not at the World Bank. He could not get a job anywhere else in the Caribbean so headed for your mother country. He was in Dominica for a while, could not get a job and ended up doing huckstering in the french islands.
ds, explain to me how can Thomson be employed by the IMF and have a boss in Dominica?
I know Athie very well also, Athie has a degree in Agronomy; which I doubt he knew how to use it; in case you do not what that entails read this:
Agronomy is the science and technology of producing and using plants by agriculture for food, fuel, fiber, chemicals, recreation, or land conservation. Agronomy has come to include research of plant genetics, plant physiology, meteorology, and soil science. It is the application of a combination of sciences such as biology, chemistry, economics, ecology, earth science, and genetics.
So, I give credit to Athie for remaining in University or a four year college to earn that degree; however, he did not use his knowledge to help Dominica agriculture!
Boy I introduce Sir Athie Martin to a Hollywood movie director, and producer who wanted to bring an annual film festival to Dominica, ask Athie what he did with all the communication:
You see in Dominica, it is all about talk where it pertains to politicians such as Athie, an annual film festival in the country would be good providing seasonal jobs okay!
Everybody I spoke with concerning that had a connection with Me Almost Nearly Cousin that damn Dominica Mounting Chicken Crapaud Mentality Roosevelt Skerrit; anyway I cannot blame him for this one because by the time I had the opportunity to tell Roosevelt Skerrit about, the Movie Director and Producer had already given up on Dominica, and took her business to some place in the Bahamas.
But boy, Athie procrastinated, making belief he could make this thing Materialize, so with that experience, you could not convince me to listen to anything the Agronomists have to say about Fountain oui!
And before you or any Dominican say Francisco lie; asks Athie if he knows what I talking about.
And by the way Athie is one responsible for the destruction of Dominica; shutting down construction of the International…
ds, the term “unending” implies having or seeming to have no end!
How can you decided that the war in Ukraine is unending when the war is less than a month old, and by the way NATO, and the united States are not in a war with Russia, if they were, the NATO allies would have troops on the ground in Ukraine.
To my knowledge the United State is the only nation helping to supply Ukraine with arms and ammunition thus far. If you are informed you perhaps know, that the United States and NATO has refused to declare a no fly zone over Ukraine for one obvious reason.
Which is the fear of a World War lll!
If your claim of living in the United States is true, I doubt to are aware of what is taking place in Europe at the moment in regards to Russia and Ukraine, although the airways are saturated with the daily events.
Well done DOC teach them, Dominica population is about 70 thousand people compare to Sudan with millions and the Sudanese believe in your work . the problem with my people they don’t like smart people, what ever masa tell them to say they spew that garbage .Teach them Doc see you soon.
Mayfan must keep his tongue locked because he afraid Hon Money god who is his brother in law that gave him his first nephew , and the man, Hon Money god set up the entire Wallta family as part of the keep it covered deal
He said on the fourth week the ministry does an average which becomes the price of that particular product at that time which is part of a cycle that they have used over a number of years to calculate the price petroleum products
He said this on the 4th week
It is not a random exercise. It is not an exercise where, because the price has gone up as a result of the war, that it is immediately being applied. The price changes on a daily basis and people have to understand that petroleum products are a global commodity,” Walter
Then comes back as says this
Bro you lying. The war haven’t been on for 4 weeks yet so the price as you said is revaluated every 4 weeks should be left alone till the 4 weeks
Allu in that gov doh tired lie. In the same statement you saying it’s calculated every 4 weeks and then u saying global prices changes every day so u need to raise the price to match that
Not all dumbminicams that sort you kno
We continue to suffer in Dominica because of poor leadership. Our country is led, for the most part, by people who are not qualified to do the jobs they are given to do. Mr. Walter in a trained lawyer who worked in the ministry of legal affairs and was placed as director of trade while his father , Matthew Walter was still a minister of government. Since he is not trained in that area he is getting on the job training.
Additionally, he has to be loyal to the government and not the Dominican people because all his education, be it when he studied in England or Jamaica , was fully paid by the government. As soon as he was finished he got employed by the government and many may know what’s going on in Paix Bouche for him and his siblings. His name has also been mentioned as a possible candidate for the DLP in the Paix Bouche constituency but this has been resisted because of his pompous ways. Do you expect him to be in our interest or the government that continue to takes care of him?
I guess we continue to suffer everywhere in the world because of poor leadership. In every country people are complaining how much they are suffering. They want student loan debts canceled in America because they are suffering and cannot pay back. Poor Leadership, according to Garcon. Go to Barbados, they suffering, go to America, hard times, go to England, they cannot make it, go to Russia, they bombing their homes. Poor Leadership everywhere. Not just Dominica.
DS (Damn Sort) I do not communicate with your likes. your points make absolutely no sense as they are not produced by a thinking mind, but one who is enamored with evil individuals and evil.
I do not live in Dominica but unlike you, I love my country, not politicians. Just for your knowledge, Walter is a long-time friend of mine. You will be outside on his stoop while I will eat and drink at his table. I do not base my points on association but truth.
Mr. Trade Minister you are saying so many different things not even the King of lies himself is believing what you are saying. And I am not surprised nor should any one surprise because we all know your bablaing statements are inherited. One should remember the former minister of agriculture, so what else do we expect from you?
Something about this pricing is not right. You can’t tell me that you have one stark that is being used. You changing the price by the second without any new stark and now you are saying that gas price has gone up in the US or anywhere else. That makes no sense. I thought that price difference should bass on imports.
since we are in a special period, why not have special conditions, e.g reduce the vat along with government taxes on gasoline, therefore effectively holding the prices stable or even reducing it, as was done in his favorite island of Barbados.
The formula the government uses to calculate the price of fuel at the retail pump is grossly unfair to the consumer.
Petroleum products are bought at a specific price and are in storage for three (3) to six (6) months. Petroleum price keeps increasing on the world market, then consumers are forced to pay not the original price the petroleum was purchased at, but, the new prices on the world market.
Dr. Fontaine’s explanation makes much more sense. It is much fairer. Skerrit puts Dominicans through excruciatingly tough times. How any poor and downtrodden person can support him and his corrupt party is incredibly perplexing.
As long as it concerns Skerrit, it is grossly unfair. If it concerns Lennox, it is fair to very good. The government is using the baby milk formula to calculate the price for you.
Since you turned Economist, why don’t you tell Skerrit those things? Maybe he will implement them and get yourself a job at Standard and Poor.
who is thompson fontaine
ADMIN: The article states he is a Dominican Economist and financial consultant.
Mathan must defend the government because he knows if he doesnt Skerrit would ask him to disclose the source of those patan houses/ hotels/ mansions or apartments that are being built in that isolated hole at the top of Moore Park, paix Bouche. But everything done in darkness will one day be revealed
Each time a Dominica so called minister put on a vest, coat, and tie in ninety-five degrees heat and open their mouth all they do is spew fart!
What is Walter talking about: the gas I put into my cars, is the high octane 92, the price I paid as recently as Monday per gallon while leaving home in the Inland Empire coming to my home in Los Angeles, was $6.266 = EC$16.92
In the U.S., unleaded gasoline typically has octane ratings of 87 (regular), 88–90 (midgrade), and 91–94 (premium). Gasoline with an octane rating of 85 is available in some high-elevation areas, I know for a fact they only sell regular and premium in the Caribbean: if I remember correctly grade 72, and 84 anything higher than that is 115 used in some aircraft’s.
Basing his argument on price in America is foolish, we can wake up in the morning and gas prices might return to normal, while remaining prominent in Dominica!
One question I’d like to asks is what grade or octane gasoline he is talking about, because in America people pay a price based on the grade of what they used; Some Cars if the owners fill them with a gas the manufacturers did not recommend, the car or truck will not run; well it might function for a few days before one suffers a damage engine!
Why don’t you go home and fix the pump so people will stop suffering. We do not like people who live in America and operate by remote control. Somehow, I think you work 2 seconds from home and you do not have a girl to travel to see.