Saturday, 12 February 2022 04:53

ASTIC calls for a day of "no mobilization" on february 28th

Written by Evelyn Alas

ASTIC's President, Raul Alfaro, said in a morning interview that he is calling the corresponding authorities and Salvadorans to a day of "No mobilization", on february 28, due to the recent increases in fuel prices.

Alfaro points out that the proposal as part of ASTIC, is to freeze the Value Added Tax (VAT), when fuel rises to more than US$0.30 in taxes.

Alfaro said that it is a relative measure, if the VAT collected by the state were frozen at US$0.30. He said that people would be paying US$3.74, which could work when fuels increase their rates and not affect in this way the cargo transportation sector, buyers and final consumers.

He also said, at the end of 2021, fuel costs decreased US$0.80, where the value remained between US$2.50 and US$3.30; while, in 2022, there is a diesel increase of US$0.55, which consequently has left prices between US$3.30 to US$3.85 per gallon.

ASTIC points out that if a gallon of gasoline goes up US$0.25 and carriers spend 100 gallons, they would raise their total inland freight costs.

But, if the increases stay within the US$3.76 to US$4.00 price range, the institution will absorb those increases.

Since october 2021, carriers have expressed their concern about rising fuel prices, which directly affects inland freight rates.