On Wednesday, March 25th, residents of San Pedro Town on Ambergris Caye faced another increase in fuel prices. The new diesel price is $14.96 per gallon, while regular gasoline is $13.44.
This represents an increase of almost $3 for diesel and nearly $2 for regular gasoline. Diesel and gasoline are the main types of fuel consumed on Ambergris Caye. As such, residents are concerned about the rising cost of living, as all goods are transported from the mainland to the island.
“The cost of living is already very high, and now with this new increase, I think we will have to budget even more,” one motorist said while refuelling at a local gas station. “This could affect businesses as well, because the cost of food and services at restaurants may increase, further affecting consumers.”
The latest increase is attributed to a spike in global oil prices linked to ongoing tensions in the Middle East involving Iran. The situation has disrupted key shipping routes used by oil tankers.
The Government of Belize said it is difficult to regulate fuel prices in the country. Prime Minister Honorable John Briceño stated on Tuesday, March 24th, that the government has already reduced fuel taxes by approximately $1.25 per gallon. He noted that this represents a loss of nearly $60 million in revenue.
Briceño added that another fuel increase is expected in the coming days. “I guess we will have to take a hard look at the budget and see if we can put some projects on hold until things stabilize,” he said. He explained that further tax reductions on fuel could result in a shortfall of over $200 million, which would impact the government’s ability to pay teachers and other public servants. The government has not outlined a definitive plan should prices continue to rise. “We are doing the best that we can to ease the pressure on people,” Briceño added.
As of March 25th, oil prices were slightly lower amid potential ceasefire talks in the Middle East. West Texas Intermediate crude traded between US$87 and US$90 per barrel, while Brent crude traded between US$98 and US$102 per barrel. Diplomatic efforts involving Iran have reduced some supply concerns in the Strait of Hormuz, a key shipping route for global oil transport.
