Gov’t Providing $2 Billion to Assist Persons Most Impacted By High Gas And Energy Prices

• The Government is making a special provision, in the amount of $2 billion, to provide targeted support to Jamaicans who are most adversely affected and have the least ability to absorb the impact of high gas and energy prices. 
• Though discussions are in their initial phases, the provision is expected to target key stakeholders such as taxi operators, who have fixed fares, as well as children on the Programme of Advancement Through Health and Education (PATH), who have transportation costs. 
• Additionally, the government has a long term strategy to reduce Jamaica’s dependence on petroleum. Given that majority of Jamaica’s import bill is for petroleum used by cars, the government intends to provide incentives to promote the use of Electric Vehicles, which is a cheaper alternative. 
• This incentive will come in the form of reduced import duty from 30% to 10%, for an initial five-year period. The measure will be executed in the first quarter of the financial year 2022/2023. 
• As the government combats gas and energy prices by incentivizing Electric Vehicle purchases, petroleum retailers may see a gradual demand reduction.

(Source: JIS and NCBCM Research)