Frans Ponson of the United Merchants Association of Aruba (C.U.A.) is raising concerns about the structure of fuel prices and the burden that excise taxes and the BBO tax place on consumers and businesses. He points out that taxes account for a significant portion of the price of every liter of fuel, with the government receiving the largest share.
Breakdown of fuel taxes
According to the calculations he presented, a substantial portion of the money paid for fuel goes to excise taxes and BBO, placing a considerable financial burden on both consumers and businesses.
The figures indicate that the government receives approximately 40.3% of the money paid for fuel, while gas stations retain a much smaller margin of around 7.3%.
Ponson also questions whether the fuel market offers genuine competition. He notes that gas stations often operate within a market structure characterized by monopolies or limited competition. Despite these constraints, businesses frequently face public criticism when fuel prices increase.
Impact on consumers and businesses
C.U.A. questions why increases in international crude oil prices are quickly reflected in higher fuel prices, while decreases do not appear to translate into comparable savings for consumers.
Ponson argues that the current tax measures should be reviewed to determine whether they provide meaningful relief to vulnerable groups in the community.
He warns that the tax burden may instead place additional pressure on local businesses already struggling with high operating costs.
