Santiago Sesé views it as a necessary addition to the partial reimbursement of the specific fuel tax that is applied to farmers and transporters
SANTA CRUZ DE TENERIFE, 30th March (EUROPA PRESS) –
The President of the Santa Cruz de Tenerife Chamber of Commerce, Santiago Sesé, has praised the introduction of the fuel bonus in the Green Islands. This measure, a long-standing request by the Chamber Institution, has been deemed “vital” in lessening the economic burden of double insularity and improving the competitiveness of these islands.
According to Santiago Sesé, “it was a mere matter of political determination to implement it.” He commends the new Executive for their choice as it is a “reasonable and indispensable” measure that “will lead to direct savings for citizens and, concurrently, will impact the prices of goods and supplies that are transported to these islands, affecting their pricing.” “This price reduction will also indirectly affect the purchasing power of all residents on these islands,” he added.
The measure, which will be effective from the following Monday, 1st April, in La Gomera, El Hierro and La Palma, entails a reduction of 0.20 euros per litre refuelled and will remain in place until the end of 2024. Nevertheless, this reduction cannot be combined with the partial refund of excise tax. Hence, farmers and transporters will have to select the bonus to be applied to each refuelling.
Santiago Sesé believes that overcoming the expiry of the measure and its incompatibility with other aids are the two challenges that need to be faced once the positive effects on the pricing level of this critical raw material start to show.
The hike in fuel prices on these islands is a structural issue caused by double insularity and the lack of competition resulting from the reduced demand and storage costs that companies incur while providing fuel on these islands. Consequently, the Chamber emphasises that this measure should not merely be for 2024 but should be a permanent solution.
COMPLEMENTARY SUPPORT
The implementation of this reduction signifies that prices will be more aligned with those in the capital islands for individuals. However, for professional transporters and farmers, the issue persists as the 20 cents are not compatible with the partial refund of the special fuel tax that they receive in the remaining islands (around 15 cents).
In this context, the Chamber highlights the importance of merging both aids to enhance competitiveness for both sectors. Enhancing, in the case of transport activities, the advantageous impact on all goods consumed in the Green Islands, given that a large portion of them originate from Tenerife. “A larger bonus could result in more competitive final prices for all transported goods and, as a result, a more affordable shopping basket for all residents and companies on the islands of La Palma, La Gomera and El Hierro,” concludes Sesé.
