At a Tuesday press conference with visiting Mexican President Vicente Fox, Prime Minister Said Musa announced (See PEMEX brings hope for lower gas prices) that Mexican oil giant PEMEX would be opening its first gas station in Belize in the coming months. In not so many words, Musa said that the introduction of PEMEX might be Belize's answer to high gas prices because currently there is only one supplier - Esso. Well in a paid ad appearing in today's AMANDALA Newspaper, the Belize Service Station Dealer's Association said Musa is just plain wrong: the answer to lower fuel prices lies in lower taxes.
The release states that more than 4 out of the almost 9 dollars that you pay at the pump goes into GOB's pockets. The dealers point out that as the acquisition cost for fuel decreases, GOB's take increases. And while PEMEX gasoline retails for BZ$3.75 in Chetumal, the dealers say that gas would also have to be taxed and as long as GOB's tax structure remains the same, so will the price. The dealers who represent 40 service stations warn that the introduction of PEMEX might lead to gas station closures.
As for taxes and rising prices, we note that government's tax take is a percentage. So perversely, the higher the price, the higher the tax. Since 1998, government's revenue has increased from, $39 million to $85 million.
