Page 9 - LatAmOil Week 15 2022

LatAmOil TRINIDAD AND TOBAGO LatAmOil

Port of Spain to reduce fuel subsidies

COLM Imbert, the prime minister of Trinidad money could be far better utilised in the social
and Tobago, announced on April 8 that his gov- services sector, in the health sector, in our capital
ernment intended to reduce subsidies for petro- development programme, on VAT refunds and
leum product prices as of April 19. on clearing off unpaid bills owed to contractors
In an address to members of the House of and suppliers of goods and services, just to name
Representatives, Imbert said that the policy a few areas.”
change would cause the price of premium gas- The prime minister described this expense
oline to go up by TTD1.00 ($0.15) per litre to as both unsustainable and unsupported by the
TTD6.75 ($0.99) per litre as of April 19 and the current budget. He also warned that the country
price of super gasoline to climb by TTD1.00 per might very well have to pay out the extra funds
litre to TTD5.97 ($0.88) per litre. Meanwhile, he if it did not take steps to keep the subsidy policy
said, the price of diesel will rise by TTD0.50 to in check, given the current state of world crude
TTD3.91 ($0.57) per litre and the price of kero- markets.
sene to TTD3.50 ($0.51) per litre. Petroleum product prices have been greatly
At the same time, he stated, the price of LPG affected by recent geopolitical developments,
will remain unchanged at TTD21 ($3.08) per such as the Russian invasion of Ukraine, which
20-pound cylinder. has helped to push world crude oil prices up
Imbert also told legislators that Port of Spain to eight-year highs, he explained. “Brent oil
had taken the decision to hike fuel prices out prices averaged $97 per barrel in February 2022
of economic necessity. The government is no and $106 per barrel in March 2022, increasing
longer capable of bearing the cost of subsidies by over 60% from $65 per barrel at the end of
at the current level and is asking consumers to December 2021,” he was quoted as saying by the
assume some of the financial burden, he said. Daily Express newspaper. ™
Under the existing policy, he explained, the
government of Trinidad and Tobago’s direct
liability for domestic fuel subsidies amounts
to about TTD922mn ($135.34mn) per year if
world crude oil prices average $80 per barrel,
with the total rising to TTD1.94bn ($284.76mn)
if oil prices average $100 per barrel. So if crude
prices average $95 per barrel, Port of Spain’s
share of direct subsidy liability would come to
around TTD1.6bn ($234.86mn), he said.
“There are many competing demands for
scarce resources in Trinidad and Tobago at this
time, and the government is of the view that it is
not productive, equitable or prudent to spend
an unbudgeted TTD1.69bn [$248.07mn] or
TTD1.47bn [$215.77mn] more than planned,
subsidising fuel in 2022,” he commented. “This Imbert announced plans for the price increase last week (Photo: Parliament of T&T)

GUYANA
Ali says Guyana has received at least six

proposals for small refineries in Region Six

GUYANA’S President Irfaan Ali said on April 11 build small oil-processing plants in the region,
that at least six companies had submitted pro- Ali said during a public meeting with residents
posals to the government for the construction of New Amsterdam. He did not name any of
of oil refineries in the East Berbice-Corentyne the firms or reveal the details of their proposals,
region, also known as Region Six. but he did indicate that Guyana’s resource base
The companies in question have all offered to could support a domestic refining industry.

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