The leader of the PAICV parliamentary group, Carla Lima, has called for changes to the fuel price fixing mechanism in Cabo Verde. This follows a meeting with the Electra Board of Administration as part of preparations for the next parliamentary session. Lima stated that the increase in international fuel prices is beyond the government's control. However, she noted that internal mechanisms can be adjusted to better protect consumers. The current mechanism is regulated by Decree-Law No. 19/2009.
According to Lima, the decree-law and subsequent resolution and deliberation governing fuel price fixing need to be amended. These changes would enable the government to implement new measures to mitigate the impact of rising prices on consumers. The PAICV leader emphasized that altering these mechanisms and approving new legislation is crucial. This would allow the government to continue implementing measures to protect Cabo Verdean consumers.
Lima highlighted the government's intervention in the butane gas market to cushion the impact of international price increases. The government has managed to absorb a significant portion of the increase, preventing sharp price rises. Approximately 70% of the increase has been absorbed. However, regarding diesel, gasoline, and other fuels, Lima stressed the need for changes to the legal framework.
The government has already committed to altering the diplomas to allow for new measures. This would enable better regulation of fuel prices without overly affecting Cabo Verdeans. Lima was questioned about whether the PAICV parliamentary group would present the necessary changes during the next parliamentary session. She clarified that the primary diploma in question is a decree-law that can be altered by the government.
According to Lima, the government has shown willingness to change the diploma and implement other compensation measures. The PAICV leader emphasized that changing the fuel price fixing mechanism is essential. This would allow the government to adopt new measures to mitigate the impact of rising international fuel prices on Cabo Verdean consumers.
The current mechanism has been in place since 2009. It has been criticized for not providing adequate protection to consumers during times of high price volatility. The PAICV's proposal for change has been welcomed by some consumers. They believe that adjusting the mechanism would help reduce the financial burden of fuel price increases.
The government's response to the PAICV's proposal remains to be seen. It is unclear when the changes to the fuel price fixing mechanism will be implemented. However, with the PAICV's advocacy, there is hope that the government will take action to alleviate the impact of rising fuel prices on Cabo Verdean consumers.
Key points
- The PAICV is advocating for changes to the fuel price fixing mechanism.
- The current mechanism has been in place since 2009.
- The government has shown willingness to alter the diploma and implement other compensation measures.
