#5081: More on Gasoline Prices in Haiti (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Max Blanchet <MaxBlanchet@worldnet.att.net>

Further analysis of fuel prices in Haiti

I have tried to determine who gets what percentage
of the selling price for regular and super gasoline in
Haiti.

Starting with the current prices and deducting the
takes of the various players such as the oil companies,
the shippers and the local distributors, I have concluded
that the take of the GOH ranges from US $0.59 per gallon
of regular to US $0.94 per gallon of super gasoline
(see table below.)

Expressed as a percentage of the selling price, this
translates into 28.2 % and 36.9 % respectively.

By comparison, the tax on premium unleaded gas at
the pump is as follows in various countries:

Country	Cost, US $/gal	% to taxes

Britain	    4.37		76.2

France	    3.76		69.1

US	    1.71		22.8

Source: the NYT of Tuesday, September 12, 2000

So, the tax in Haiti, though higher than in the US, is
much lower than in Europe. Given the level of poverty
in the country, it does, however, represent a huge
burden for the average citizen.

How was it arrived at?
How are the proceeds of this tax used?
Are they used to finance a reliable, efficient public
transportation system that benefits the public at large?

These are issues that should have engaged the new
Parliament as a means of educating the public about
the real nature of fuel economics and giving the GOH
the opportunity to establish an equitable pricing system
in a transparent manner.

______________________________________________

Components		Super	Regular

1) Selling Price, $/gal	2.55	2.09

2) Cash Price of Gas, $/gal	1.08	1.00 (A)

3) In Haiti Mktg., $/gal	0.18	0.15 (B)

4) Shipping to Haiti, $/gal	0.35	0.35 (C)

5) Total cost and Profit, $/gal	1.61	1.50 (D)

6) GOH's take, $/gal	0.94	0.59 (E)

7) GOH's take as % 	36.9	28.2 (F)


A) Source: the NYT of Tuesday, September 12, 2000,
page C21,  basis: NYC Harbor, fob.

B) Set at 7% of selling price per certain press reports.

C) My own estimate, includes some profit by oil majors
and transportation from NYC to the gas stations in Haiti.
This entry probably involves the highest degree of
uncertainty.

D) Item 5) = 2) + 3) + 4)

E) Item 6) = 1) - 5)

F) Item 7) = 6) x 100/1)