Previous Story
CPA to reduce wharfage charge for fuel products
|
Posted on Feb 01 2006
Beginning next month, fuel companies can start saving over 20 percent in terminal tariff for liquid petroleum products.
The Commonwealth Ports Authority has finalized its plan to reduce wharfage rates for gasoline, diesel, bunkers, and other liquid petroleum products off-loaded or on-loaded by pipeline at the CNMI ports.
The proposed regulations have been published in the Jan. 25, 2006 issue of the Commonwealth Register. The proposal will be adopted if it receives no major opposition during the 30-day public comment period.
The new rates will be implemented 10 days upon adoption.
CPA seeks to reduce the current fuel wharfage rate of $5.50 per revenue ton. Instead, the authority proposes to charge $4.31 per revenue ton from Jan. 1, 2006 to Sept. 30, 2007. Then, the rate will be slightly increased to $4.52 per revenue ton between fiscal years 2008 and 2012.
In addition, the ports authority wants to keep the wharfage rate for all other types of cargo at the current rate of $5.75 per revenue ton until Sept. 30, 2007.
However, wharfage rates will be raised to $6 per revenue ton beginning FY 2008 until FY 2012.
Thereafter, the wharfage rates on all cargo will increase by 5 percent for each succeeding five-year period, according to the authority.
“The proposed regulations are intended to further define wharfage charges and to reduce wharfage charges on liquid petroleum products such as gasoline and diesel. It has been determined that the current rates are higher than certain other commercial ports and a reduction is warranted which will contribute to a reduction in the cost of living in the Commonwealth,” CPA explained.
Wharfage is assessed against all cargo passing any CNMI port.
