Belmopan- The Government of Belize (GOB) expects that prices will soon moderate at the pumps in Belize, after a rapid increase in fuel prices over the past weeks.
The GOB said in a statement that the sharp increase in fuel prices was caused by a confluence of negative factors influencing the acquisition costs of refined fuel sourced by Belize. According to government sources, a temporary irregularity in supply under the Petrocaribe Program combined with a limitation in supply from alternate sources due to the effects from Hurricane Harvey is to blame for the accelerated price increases.
The GOB assured that the increases in the pump price are 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.
The GOB also stated that 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.