Page 8 - LatAmOil Week 08 2021

LatAmOil TRINIDAD AND TOBAGO LatAmOil

Former energy minister endorses

liberalisation of domestic fuel markets

KEVIN Ramnarine, the former energy minister In the meantime, though, he stated that the
of Trinidad and Tobago, has expressed support government had made the right decision with
for the government’s efforts to liberalise domes- respect to selling off the retail filling stations
tic fuel markets. owned by National Petroleum Marketing Co.,
Ramnarine expressed satisfaction with Port known as NP. The sale will allow NP to con-
of Spain’s decision to lift subsidies for domestic centrate on its core wholesale business, he
motor fuel prices, saying that this move was “a commented.
step in the right direction,” especially since the “It is a good idea for NP to exit the retail side
biggest beneficiaries of the policy had been of the supply chain. Let NP confine itself to being
wealthy citizens who owned large vehicles. The a wholesaler. Right now, NP is both a retailer and
new policy is sure to mitigate environmental wholesaler of fuel, but it will be more efficient if
risks and “migrate TT towards being a low-car- it focuses on its core business,” he was quoted as
bon economy,” he said. saying by the Guardian newspaper.
The elimination of the subsidy will benefit Ramnarine said he expected the NP sell-off
the economy by reducing budget expenditures, to lead to “a major shake-up” in the domestic
he asserted. He also said it was not likely to lead fuel sector and described it as “a most important
to significant changes in fuel prices in the near development.” He also stressed, though, that the
term, since world crude oil prices are still low. process ought to be as open and transparent as
But if oil markets approach $70 per barrel, he possible. ™
remarked, “the government might want to cap
the prices at the pump and to intervene with a
subsidy.”
Additionally, he stated that he wanted the
government to scrap other provisions of the
1974 law that established the fuel subsidy –
including the fuel levy, which was created to help
companies cover the cost of the subsidy. “If the
minister gets rid of the subsidy, he should also
get rid of the levy,” he declared.
The former minister also argued in favour of
further liberalisation, saying that he hoped the
government would eliminate Paria Fuel Trading
Co.’s monopoly over the domestic motor fuels
market and allow more competition. “If we are
liberalising the fuel sector, have multiple compa-
nies licensed to import fuel,” he said. NP is slated to exit the retail fuel sector (Photo: NP)

VENEZUEL A
Venezuela reportedly sends jet fuel to Iran

VENEZUELA is shipping jet fuel to Iran in gasoline and feedstock for motor fuel to Ven-
return for vital gasoline imports for the South ezuela, as well as equipment and spare parts to
American nation as part of a swap deal agreed help the once-prosperous OPEC nation restart
by state-run oil firms, three people with knowl- its dilapidated refineries. But the countries have
edge of the matter have told Reuters. provided few details on what Iran is getting from
Iran has ramped up assistance to Venezuela Venezuela in return.
since last year as the US tightened sanctions While the US claimed Iran was being paid
on both countries, hitting oil exports by state- partly in gold, Iran’s embassy in Caracas sim-
run firms Petroleos de Venezuela and National ply stated last August that Venezuela shipped a
Iranian oil Company (NIOC). Tehran has sent cargo of mangos and pineapples to Iran as part
flotillas of state-operated tankers carrying of “win-win commercial relations.”

P8 www. NEWSBASE .com Week 08 25•February•2021