S.Atlantic : Herald Editor Explains Knock-on Affects of Fuel Price Rise
Submitted by SARTMA.com (Juanita Brock) 29.01.2005 (Article Archived on 12.02.2005)

St. Helenians will be soon be affected by the 7.55% increase that will shortly be imposed on freight rates and passenger rates on the RMS St. Helena.

HERALD EDITOR EXPLAINS KNOCK-ON AFFECTS OF FUEL PRICE RISE

By Stuart Moors

St. Helenians will be soon be affected by the 7.55% increase that will shortly be imposed on freight rates and passenger rates on the RMS St. Helena.

Very bad news I know, but there is good news too as Andrew Weir Shipping Limited ( AWSL) did state in their Bunker Surcharge Announcement last week that, “The charge will be monitored to ensure that it will be kept to the minimum level and will only remain in place until increased fuel charges are recouped.” Easier said than done. We are always hearing this kind of statement from Government or companies who have lost money. Will the fuel charges ever be recouped? Or, what would happen if fuel prices rise during the time that the unforeseen additional expenditure on fuel is being recouped. Unfortunately, we don’t have any other choice but to pay the extra increase.

How else would we travel? Perhaps the only thing that is monitored correctly here is the wage packet!

The increase will not only affect those living here, but also other Saints who reside or work elsewhere in the world. A lot of them find it hard to cope with rates that are in place now; how will they manage with the increased rates next month. Luckily, some of them are paid by their companies, who will also suffer from this surcharge. I’m sure that even the Tourist industry on St. Helena could suffer because of this increase.

The most affected Saints though are the ones who live here. This increase will see shop prices rise immensely as most goods on the Island are imported. A lot of goods sold in shops now are rocket high and that is mainly because of the current shipping freight rates. Truthfully speaking, most of us will not handle the extra cost that shops and stores will put on their essential goods, unless there is a pay rise for people who earn a very low income, which could help to cover extra costs. But then I suppose the taxes will go up. Nothing changes.