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Puerto Rico Governor Signs Measure Suspending Fuel Taxes for 45 Days as Prices Surge

Business Published On June 19, 2022 06:44 AM
Ernice Gilbert | June 19, 2022 06:44:27 AM

The governor of Puerto Rico last Tuesday signed a measure that suspended gasoline taxes for 45 days, an action taken to mitigate pain at the pump for Puerto Ricans as gas prices surge.

According to the Associated Press, Puerto Rico imposes a tax of 16 cents per gallon of gas and 4 cents per gallon of diesel.

To make up for the loss in revenue as a result of the 45-day suspension, Governor Pedro Pierluisi said an additional $25 million will be added to the general fund.

In the U.S. Virgin Islands, the government currently levies a 14 percent road tax, or 14 cents per gallon, which is passed onto consumers. There's also the gross receipt tax of 5 percent on all sales that is also passed onto consumers, though all private businesses pay the GRT. Additionally, truckers charge between 4 cents to 5 cents per gallon of gas to transport fuel from Limetree Bay to gas stations. For example, if a trucker delivers 8,000 gallons of fuel to a gas station, this trucker would charge the gas station $400 at 5 cents per gallon for delivery. 

The Bryan administration has not indicated whether it would take similar action to help mitigate the cost of fuel for Virgin Islanders. Mr. Bryan said the government is currently subsidizing the V.I. Water and Power Authority with as much as $4 million a month to keep utility rates low.

The cost of fuel has drastically increased to historic highs in the U.S. and also the U.S. Virgin Islands, with economists blaming the increase on inflationary pressures and Russia's war in Ukraine, which caused many countries to shun Russian fuel.

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