Expected moderation in fuel prices Print
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Written by Administrator   
Thursday, 28 September 2017 00:00

In the last few weeks Belize has seen a sharp increase in fuel prices due to a confluence of negative factors influencing the acquisition costs of refined fuel sourced by Belize.

Such factors included a temporary irregularity in supply under the Petrocaribe Program and also limitation in supply from alternate sources due to the effects from Hurricane Harvey.

The increases in the pump price were not driven by any increase in import duties or excise taxes which are fixed, specific-rate taxes, and which have not changed since the beginning of the Government’s financial year in April 2017.

In recent negotiations with senior officials from PDVSA (the Venezuelan state-owned suppliers under the Petrocaribe Program), Belize was assured that PDVSA is now in a position to resume deliveries to fully satisfy the requirement of Belize and the prices should moderate beginning with the next shipment of fuel which is expected to arrive in the middle of October 2017. While it is too early to say precisely the extent of the expected price reduction, the GOB is confident that prices will moderate in the weeks ahead.