TEATT Minister says gas prices adjustments coming, but not through shortcuts

GREAT BAY--Minister of Tourism, Economic Affairs, Transport and Telecommunication Grisha Heyliger-Marten says government understands the public concern over gasoline prices and is actively working on a responsible relief package with the Minister of Finance. The Minister stressed that government is not simply “monitoring” the situation, but is following a regulated process to protect consumers, maintain financial stability and ensure any relief is done lawfully.

Minister Heyliger-Marten said there has been significant public discussion in recent weeks about gasoline prices, including suggestions that the Ministry is only observing the situation without taking action. She said it is important to set the record straight with facts.

“As of last week, the consumer price for gasoline stood at Cg 3.20 per liter,” the Minister said. “To put that into perspective, when the previous government reduced the excise tax in 2022, gasoline was selling at Cg 3.29 per liter, and the price fell to approximately Cg 3.15.”

Minister Heyliger-Marten noted that despite continued volatility in global oil markets, the current gasoline price is only five cents higher than the price reached after the 2022 relief measure. She said St. Maarten has experienced fuel prices at similar and even higher levels before.

The difference today, she said, is that this government is working toward a lawful and sustainable framework for relief rather than temporary reactions without long-term structure.

“The people of St. Maarten deserve relief, but they also deserve a government that acts within the law,” Minister Heyliger-Marten said.

The Minister acknowledged that the previous government lowered the excise tax in 2022 to provide relief. However, she said what is not always mentioned is that the Council of Advice raised serious concerns about how that decision was implemented.

According to the Minister, the Council stated that the legal procedures required by law were not properly followed. In other words, she said, the process did not meet the standards of good governance.

“We will not repeat that mistake,” Minister Heyliger-Marten said.

She explained that monitoring fuel prices is not passive. Rather, it is part of responsible economic management. Every fuel price adjustment must be based on objective factors, including international posted prices, freight and insurance costs, the fixed liquid throughput fee, fixed wholesaler and retailer margins, fixed excise tax, and turnover tax.

“This is a regulated pricing system designed to protect consumers from arbitrary price increases and price gouging,” the Minister said. “This is not guesswork. It is not politics. It is a rules-based system.”

Minister Heyliger-Marten said she is working together with the Minister of Finance on a responsible relief package, pursuing two tracks at the same time: temporary relief and a long-term framework.

The first track focuses on temporary relief. Because both fuel prices and fuel consumption have increased, government is collecting slightly more turnover tax. The Minister said this may create room to provide relief without placing additional pressure on the country’s finances.

Government is now examining whether a portion of that natural revenue growth can be responsibly used to support a temporary reduction in excise tax and provide relief at the pump.

“For families and businesses, that could translate into lower fuel costs and some much-needed breathing room,” Minister Heyliger-Marten said.

The second track focuses on developing a long-term framework that would allow government to respond more quickly and transparently when global fuel prices spike. The objective is to ensure that when international prices rise sharply, government has a lawful and ready mechanism to cushion the impact on consumers.

Minister Heyliger-Marten said this approach is intended to provide relief while safeguarding the country’s financial stability.

“That is the difference between responsible governance and short-term political reactions,” the Minister said.

She emphasized that lowering excise tax is not as simple as flipping a switch. It must be done legally, responsibly and sustainably.

“That is exactly what this government intends to do,” Minister Heyliger-Marten said. “The people of St. Maarten deserve real solutions, not shortcuts.”

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