CUD calls for temporary suspension of oil taxes to offset rapid hike in fuel prices.

CUD urged state and federal authorities to implement temporary relief measures amid rising fuel prices.

By THE STAR STAFF

United Retailers Association (CUD, in Spanish) President Ramón Barquín urged local and federal authorities on Tuesday to suspend certain taxes on oil and its derivatives to help offset the rapid increase in fuel prices driven by the geopolitical crisis in the Middle East and the near standstill of maritime traffic in the Strait of Hormuz

Barquín, former president of the Organization of Retail Trade of the Americas, expressed his deep concern that the armed conflict that has arisen in the Middle East - in the context of military operations aimed at neutralizing the threat posed by Iran’s nuclear capabilities under the dictatorial regime of the ayatollahs - has triggered a new phase of global energy uncertainty. The ensuing hostilities have impacted one of the most important strategic points in the international oil trade.

“The Strait of Hormuz is the world’s energy lifeline,” Dr. Barquín said. “A large share of oil that fuels the global economy passes through this waterway. Any interruption or threat has an immediate effect on energy markets and the cost of living for millions.”

The business leader warned that Puerto Rico’s reliance on imports makes it highly vulnerable to external shocks. Higher fuel prices raise transportation and manufacturing costs, which drives up consumer prices.

“When fuel prices rise, everything else rises. The cost of moving merchandise increases, the cost of producing goods increases, and the cost of operating businesses increases. It’s an economic chain reaction that ends up hitting both small businesses and Puerto Rican consumers,” he explained.

Given this situation, the president of the CUD urged state and federal authorities to consider temporary remedial measures to help with the immediate impact of rising fuel prices. He recommended options such as suspending or reducing certain taxes on fuel, including the well-known tax on oil and its derivatives—popularly called the “crudita.” He also mentioned reviewing other taxes that affect the import, wholesale distribution, and retail sale of gasoline and energy suppliers.

“The government has temporary tools that can ease this economic pressure while markets stabilize. Temporarily suspending certain fuel taxes can help cushion the impact for both retailers and consumers,” stated Dr. Barquín.

The CUD president emphasized that energy markets are being affected by extraordinary geopolitical events. By its nature, he said, this should be understood as a temporary disruption.

“We must recognize we are facing an extraordinary international event that is causing immediate economic pressures. Part of this impact is temporary. We must face this with responsibility and solidarity until the international order stabilizes,” he stated.

Dr. Barquín added that the crisis is unfolding as military forces act to stop a greater threat to global security.

“A nuclear-capable Iran controlled by the Ayatollahs’ regime is extremely dangerous for global stability. The military actions taken aim to neutralize that threat and protect international security. The United States and Israel have acted to prevent this danger and safeguard the strategic balance in the region,” he maintained.

He noted that many Middle Eastern countries share concerns about the Iranian regime’s expanding military influence. Nuclear proliferation in the region could have serious consequences.

“When faced with threats of this magnitude, preventive decisions—however complex—are made to avoid worse conflicts in the future. Even though there is economic pressure now, the stability and lasting peace of the world have incalculable strategic value,” he stated.

The CUD president urged Puerto Rican businesses to act with financial prudence during this uncertain period.

“At times like these, we urge our merchants and business owners to be conservative and prudent with their operating expenses. Now is the time for administrative austerity.”