A new regional agreement signed between CARICOM and oil rich Venezuela will provide cheaper gas to CARICOM nations by eliminating the middleman from the chain of supply, thereby avoiding the added markup. Today Information Minister Smith outlined the programme and explained why it will account for cheaper pump prices.
Godfrey Smith, Minister of Information
"When you add up all the things that they will help us with, it should really mean that you are able to resell here in Belize at rates that are substantially below what (we) currently obtain. Based on my understanding thus far, they are very careful that if we are going to offer you all these facilities to enable you to resell fuel at a cheaper price, then they don't want it to be going in the hands of a private company. The whole idea is that this thing must filter down for the benefit of Belizean consumers. And the broad philosophical strokes of the whole agreement is that we are going to use this thing that we're offering you, this fuel, to help the economies of the Caribbean region with their social development and so on. So their whole thinking is that people won't make profit off of this source of energy."
Jules Vasquez,
Every time the acquisition cost increases, in fact the government of Belize benefits with a revenue windfall perversely taken at the cost of the consumer because its 40% of $4 as opposed to 50% of $2 so I'm saying the government is the problem in so far as making a profit in time of famine from the increase in the acquisition price.
Godfrey Smith,
"Even if you're 100% correct on that, that is precisely why we're going all out to try to find alternative means of bringing down the price. So I accept that there are taxes on these acquisition costs. Yes that is so, we are currently engaging in more than process to try to address that."
Adele Ramos, AMANDALA Newspaper
"The response of the Service Station Dealers Association is that pump prices are high but government collects x amount dollars out of all that anyways and its all in taxes so have you factored into the whole picture of bringing down pump prices?"
Godfrey Smith,
"I'm afraid that's not something for me. That's beyond me."
Adele Ramos,
"Would that not have been a discussion that took place at the Cabinet level?"
Godfrey Smith,
"No. Cabinet did not discuss taxation on fuel coming into Belize."
The agreement could includes financing for a fuel depot for Venezuelan fuel in Belize. Belize's Energy Minister Vildo Marin will now engage in bi-lateral negotiations with his counterpart in Venezuela.
