GOB absorbs fuel price increase

Friday, March 2nd, 2012

Press Release – Ministry of Finance – Belmopan, 2nd March, 2012 – The Ministry of Finance wishes to advise the public that as a consequence of the continuing rise in world oil prices there will be a further sharp increase in the CIF prices of fuel products on the next shipment due to arrive in Belize on 2nd March 2012.

The Government of Belize, mindful of the negative effects that this would have on the public, has taken a decision to absorb the price impact by varying import duties on this shipment only, in order to maintain fuel prices at their current level, with the exception of kerosene, which will increase by only six cents per gallon. This is a one-off action and will be reviewed when the next shipment of fuel arrives in the country.

The impact of the CIF price increases, if not mitigated, would have resulted in pump prices of gasoline and diesel increasing by slightly over fifty cents per gallon and twenty seven cents per gallon respectively. The cost to Government of its intervention to save the public from the higher pump prices is estimated to be $1.5 million over the next four weeks.

In the meantime, the Government of Belize intends to urgently seek new sources of supply for imported fuel on more favorable terms, so as to provide stable prices and lasting relief to consumers.

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