Global Oil Prices and the Cost of Fuel in Belize

Prices for crude oil on the international market plunged dramatically to historic lows, setting off expectations that the savings will be passed on to consumers here. The state of emergency has restricted travel and movements so consumers have been using less fuel. Finally, a break comes tonight at midnight and Belizeans will feel a little relief in their pockets as it applies only to regular fuel at the pumps.  Here is News Five’s Isani Cayetano with a report.

Isani Cayetano, Reporting

The cost per barrel of crude oil on the international market has plummeted significantly over the past week, arguably the worst plunge in oil price history.  While prices are being stabilized, the slide is predictably far from over as storage across the globe reaches capacity.  But what does this steep and sudden decline in oil prices mean for fuel consumption in Belize?  It is no secret that the cost of purchasing fuel from our suppliers directly affects the prices we pay at the pump.  So while it has been a whirlwind week for oil prices on the global market, don’t expect that the price per gallon of fuel will automatically go down at the gas station.  In rationalizing the existing cost of fuel, notwithstanding the nose-dive, Financial Secretary Joseph Waight said, “the retail sales have been down by almost seventy-five percent as a result of the lockdown and the loss /decrease of income for many thousands of vehicle owners and operators.  The old stock still has not been exhausted but should occur in the near days ahead.  We have no firm date yet… by the way, the G.O.B. revenues from fuel taxes is down by an equal amount.”  This afternoon, the Ministry of Finance announced that as of Saturday, April twenty-fifth, the pump price for regular gasoline will decrease by two dollars and ninety-seven cents, from ten dollars and twenty-three cents to seven dollars and twenty-six cents per gallon.  But that’s the only discount, the prices for premium gasoline, kerosene and diesel will remain unchanged.  According to a release issued by government, the price change reflects current demand and supply conditions of crude oil in the international petroleum market and fluctuations in the acquisition price of refined fuel products in the countries from which Belize obtains its supplies.  Despite the change in pump price for only regular gasoline, it is anticipated that thousands of consumers will be taking advantage of the discount beginning Saturday.