Fuel Tax Increase in Budget Not Fully to Blame for Price Increases

Fuel moves Belize, but the question tonight is whether the country may grind to a halt as a result of rising fuel prices. According to Prime Minister Dean Barrow, the legislated fuel increase in excise taxes is for twenty million dollars spread out over the 2017-2018 financial year; the subsequent increases are a result of ongoing issues in the world fuel market and particularly with Belize’s main supplier, Venezuela. Nonetheless he remains optimistic about both lower fuel costs and the worth of Petrocaribe.

Reporter

“The tax measure that related to fuel, would that only come in one increase…”

Prime Minister Dean Barrow

“We increased…”

Dean Barrow

Reporter

“Has it been done already?”

Prime Minister Dean Barrow

“Yes, yes. So we increased the amount per gallon?”

Reporter

“So we have to forget that now?”

Prime Minister Dean Barrow

“Right, and that would have produced an increase. But remember, that at the same time, the acquisition costs were down; I’m sure it would have been a net increase, but it wouldn’t have been as much as we first feared, because the acquisition costs were going down and had gone down from fifty to forty-eight or five, but we do have the problem of the…”

Reporter

“So once again our relationship to Venezuela is costing us?”

Prime Minister Dean Barrow

“Indeed, but it’s costing us on the one hand; it’s still the gift that keeps on giving on the other, though not quite as handsomely, not quite as lavishly, not quite as bountifully as before. Remember that as long as they are still able to supply us with a portion of our needs, we still benefit from the arrangement in which a portion of the price is used by us as a long term loan.”