TT: 50% of the cost of a litre of gas goes to the government

Government collected nearly $800 million in taxes on gasoline in the 12-month period ending March 2004, according to a document at the Ministry of Energy.

The State collected so much money on the sale of fuel last year, an estimated $713 million from NP alone, that one official described the nation’s 169 gas stations as virtual tax collectors for the Government.

But while the government collected close to $800 million from the sale of fuels, it owes NP $300 million in a subsidy most of which is collected from oil producers.

NP actually collected $175 million in subsidy from the government.

It is estimated that the total fuel market in T&T is worth $1.55 billion—with State-owned National Petroleum (with 160 gas stations) accounting for 90 per cent of the market with $1.4 billion.

The balance comes from the nine gas stations under the flag of Unipet, a group of independent businessmen.

The State collects $1 in excise duty on every litre of gasoline sold in the country.

In addition, it collects up to $0.38 per litre in VAT on gasoline sales and $0.10 per litre in road improvement taxes.

This means that the State collects nearly 50 per cent of the sticker price on every litre of gasoline sold in this country.

You know that gas station owners are passing that on to consumers.