Comments by US President Donald Trump regarding a possible opening to cease airstrikes on- and end the war against Iran sparked hope worldwide that the latter’s closure of the Strait of Hormuz and related oil price spike might soon be over. However, Teheran’s regime has so far denied any talks and called it a ploy to calm down financial markets, which indeed seems to have happened.
Although the United Kingdom (UK), the Netherlands, Germany, France, Italy, Canada and Japan are willing to help with “appropriate efforts to ensure safe passage,” there was no immediate word on how soon a fleet could be assembled or the nature of its operations. For now, transport and energy expenses as well as – consequently – just about everything else can be expected to continue going up.
Locally gasoline rose from 2.288 to 2.850 Caribbean guilders per litre (see Monday newspaper), by 56.2 cents or approximately 20%. Diesel went from Cg. 1.918 to 2.679, an increase of no less than 76 cents or 30%. It was also the third hike in fuel tariffs in little over a month.
By comparison, Curaçao’s gasoline and diesel rates are now respectively Cg. 2.15 and Cg. 2.22 per litre, notably lower. Calls have recently been made there to suspend the double 6% OB sales tax on fuel.
The same was requested by, among others, United People’s party (UP) Member of Parliament (MP) Francisco Lacroes for St. Maarten’s 5% turnover tax. Minister of Tourism, Economic Development, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten had also mentioned looking at an excise tax adjustment.
Such steps must be carefully weighed, considering that government is already financially-strapped, without an approved 2026 budget and having cancelled the planned amendment to last year’s version. After all, earnings from the local tourism economy may be negatively impacted too, due to increasing air- and cruise fares and global uncertainty regarding the current situation in the Middle East.
Peace can sometimes come at a cost, but that of prolonged conflict is usually higher.
