I have been saying here for the longest while that the Aim/Goal of the Pass Through Mechanism by government was to END its subsidization of Fuel Prices due to its impact on Governments revenue. Shelton Daniel wrote an excellent piece on the history of the mechanism. However, in his attempt to explain the Pass Through Mechanism; the Hon. Richard Frederick has sought to paint the picture of a semi directive to the ECCU member states by the ECCB about implementing a three month pass through mechanism as the means of setting fuel retail prices and as such the SLP is doing the right thing and the UWP who initiated it with a one month pass through had not fully complied (as in a directive of course) with the ECCB recommendation. Compatriots, the ECCB never instructed/asked the ECCB members to implement a three month pass through. The Bank listed a number of issues that the members MAY consider in setting their fuel prices however the Bank believed that candidate pricing regimes should comply with a five point framework. In actual fact, the members can do as they please, use whatever mechanisms that they wish in satisfying the framework. I have attached the 5 point framework, the excerpt that the Hon. Richard Frederick use to claim that the ECCB asked that a 3 mth Pass through be used and the link to the said ECCB report for you to draw to your own conclusion. eccb-centralbank.org/PDF/pb_oil_increase.pdf
Posted on: Sat, 24 Jan 2015 06:37:10 +0000
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