Removed fuel subsidy will mean fluctuating prices

WHEN the subsidy on super gasoline and diesel is completely removed motorists will have fluctuations in prices at the pump, says Energy Minister Franklin Khan.

He made the comment while responding to a question Tuesday from Opposition Senator Taharqa Obika on dollar value of the subsidy of the three types of fuel at the pump and when will the subsidies be removed.

Khan recalled in the 2017 budget the Finance Minister said it was the intention of the Government to phase out the fuel subsidy.

“While it is still our intention to so do there are consequences to that and we are very cognizant of that especially as we have to go ultimately to a market driven prices where prices is posted like in Jamaica every month where the prices changes. In the US it virtually changes every day at the service station.