Ada questions fuel charge differences

by Sabrina Salas Matanane

Guam - Chair on transportation Senator Tom Ada recently sent a letter to the Port Authority of Guam clarifying the legal basis for charging different throughput tariffs for similar commodities and services. Ada says a recent public hearing for Bill 279 revealed that the throughput tariff for outgoing fuel is charged at a rate of approximately 53 percent less than the rate charged for incoming fuel.

He says he questions the difference in the tariff rate and if Guam is subsidizing the transshipment of fuels more so than the tax exemption of those transship fuels. "Now this variants in tariff rates is particularly important because the port is getting ready to go out and borrow approximately $50 million to modernize the port and in order to do so its going to inevitably have to increase its tariffs in order to service that debt," he said.

He says it's important to question this difference because an increase in tariff may increase the cost of living on Guam and possibly impact the neighboring region. Bill 279 removes the tax exemption on liquid fuels exported or transshipped through Guam.