Why Fuel Prices Are So High and When They Will Come Down

Premium fuel has gone above eleven dollars for the first time in several years but there is no change in the price of regular gasoline and a slight reprieve for diesel fuel. Fuel was one means of the Government acquiring revenue in the recently passed Budget, but according to Prime Minister Dean Barrow, the increases coming after April first are for different reasons, and he expects prices to ebb lower.

Jose Mai

Jose Mai, Area Rep., Orange Walk South

“In all of Central America, Madam Speaker, the only country that has fuel costs above the average price of gasoline is Costa Rica; all other countries sell their fuel below the average world cost. Madam Speaker, why is it that our fuel in this country is so high? All countries have access to the same petroleum prices on the international markets; it is taxes that make the difference, Madam Speaker, taxes; and in our case, fifty percent, almost, is what leads to high cost of fuel.”

Prime Minister Dean Barrow

“Prices should be going down, because the acquisition costs have fallen since we…”

Dean Barrow

Reporter

“How soon?”

Prime Minister Dean Barrow

“But that’s what I’m saying. They should have gone down already, because this problem with a supply overhand and the OPEC cuts not having the desired effect and the shale producers in the U.S. ramping up – all that combination has meant that the rebound in prices that the OPEC people wanted to see did not happen. However, in the case of Belize, because we are sourcing supplies from Venezuela and they are having problems being able to deliver – we put in the order and Puma ends up having to go at short notice somewhere else and we pay a little bit of a premium; and I think even the question of the haulage, the freight, becomes more expensive, so that’s what’s been happening to us.”

Mai cited prices of between five and eight Belize dollars on average for regular fuel and about the same for diesel.