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Expect fuel prices to increase again as the Government looks to cap the fuel subsidy at $1 billion.
In his presentation at the Spotlight on the Economy at the Hyatt Regency in Port of Spain yesterday, Finance Minister Colm Imbert said the fuel subsidy is estimated to cost the Government $2.6 billion for 2022 at current energy prices.
He extrapolated that for fiscal 2023, it could cost $2.1 billion based on US$97.50 a barrel of oil.
He observed that for the month of March, when oil prices were at US$130, the Government’s fuel subsidy was $309 million.
In May, it was $310 million.
In June, it was $341 million.
“We are going to end this year with the Government having to have spent $2.6 billion on fuel subsidies in the last 12 months,” Imbert said.
He said the Government had expected a fuel subsidy of about $800-900 million.
“Nobody ever expected prices to remain at that level -105, 110, 120, that sort of thing,” he added.
“I don’t think we, as a country, can afford that. We have to, as the Prime Minister indicated, set up a limit on the amount of subsidy that we can pay and the rest of it will be used for other, more desirable, more productive purposes,” he said.
T&T’s motorists have enjoyed a fuel subsidy for the past 46 years. The public consumes over one billion litres of fuel a year, for just over one million cars on the road, for a population of 1.4 million.
In the past 20 years, the Government of T&T has spent over $31 billion on the fuel subsidy.
In 2000, the fuel subsidy was $449 million and remained steady until 2004 when it went up to $913 million.
In 2005 and 2006, it averaged $1.6 billion but then increased steadily to $2.2 billion in 2007, $3.6 billion in 2008, down to $1.6 billion in 2009 and then up to $2.9 billion in 2010.
From 2011 to 2014- the subsidy was over four billion-$4.4 billion in 2011, $4.5 billion in 2012, $4.4 billion in 2013 and 4.1 billion in 2014.
In 2015, it declined by almost half that trending amount to $2.1 billion.
In 2016, it was $400.8 million, $528.6 million in 2017, $739 million in 2018 and $276.7 million in 2019.
Equal distribution of cost
In April this year the price of fuel increased by $1 and diesel by 50 cents.
In a statement to Parliament at the time, Imbert noted that the adjustment was “not to the full market prices, but sufficient to allow an equal distribution of the cost.”
The prices of premium gasoline and super gasoline were adjusted by $1 per litre to $6.75 and $5.97 per litre respectively, while the price of diesel went up by 50 cents per litre to $3.91 per litre.
“It should be noted that the adjustment to the price of diesel at 50 cents per litre is half of the increase in the price of gasoline, in recognition of the fact that diesel fuel is widely used in public transportation and in the transportation of goods. The cost of LPG will remain fixed at $21 for a 20 pound cylinder of cooking gas for domestic customers, which is less than 25 per cent of the true market price and the Ministry of Energy and Energy Industries has been tasked to look at an appropriate price of LPG for commercial customers,” Imbert had said.
In budget 2021, Finance Minister Colm Imbert had announced the liberalisation of the fuel market with fuel prices to be subject to market forces.
He had noted the “process of liberalisation of fuel prices was scheduled to commence in February to March 2022.
“However, in October 2021, it was not expected, anywhere, that oil prices would increase by over 60 per cent in five months,” he said.
In his 2021 budget speech, Imbert had said that, since 1974, the liquid petroleum products market has been subject to public economic policy but it would have been changed in 2021 with the removal of the fuel subsidy.
As per usual you are wrong that money was allocated prior to this announcement based on what the finance minister said.DMan7 wrote:The increase in the gas prices is so that the extra money from the increase can now be redirected towards paying public servants the 4% increase and backpay. Blame them hoovers and dem for that increase this time.
That chart is of the current market price in the US. It does not include delivery costs, distribution costs or sales taxes. At the listed price of US$2.46 per gallon, it would cost TT$4.43 per liter before the cost to ship to TTO, plus NP's distribution costs to truck it the station, plus dealer profits.eliteauto wrote:Question: Wouldn't countries like the US experiencing price drops for fuel not be coming down from prices significantly higher than those we pay locally? So why lower prices are expected here when ours are not at the market rate, notably when their prices increased earlier?
shaha87 wrote:We may be on par with USA prices for gasoline now.
Re: Gas prices in Trinidad & TobagoDuane 3NE 2NR wrote:Fuel price changes in T&T
rollingstock wrote:Duane 3NE 2NR wrote:Fuel price changes in T&T
Those are not the current fuel prices.
pugboy wrote:where is current prices of fuel in caribbean countries?
2WNBoost wrote:There is a deliberate push away from gasoline and diesel.
I’m pleasantly surprised at the OEM CNG options available for commercial vehicles
But the short range with the passenger car conversion kit is a turn off for me.
https://cng.co.tt/why-switch/
Where are we getting fuel from?adnj wrote:Shipping fuel to Trinidad and and Tobago AND THEN distributing to filling stations AND THEN giving station owners a markup isn't cheap.
Duane 3NE 2NR wrote:rollingstock wrote:Duane 3NE 2NR wrote:Fuel price changes in T&T
Those are not the current fuel prices.
It is.
The last bar in each graph is the unsubsidized price.
Les Bain wrote:Duane 3NE 2NR wrote:rollingstock wrote:Duane 3NE 2NR wrote:Fuel price changes in T&T
Those are not the current fuel prices.
It is.
The last bar in each graph is the unsubsidized price.
Why is unsubsidized Premium more expensive than the current price though?
Tested by whom? The fuels are tested and certified prior to the port of disembarkation. Further testing is the buyer's responsibility.gastly369 wrote:Where are we getting fuel from?adnj wrote:Shipping fuel to Trinidad and and Tobago AND THEN distributing to filling stations AND THEN giving station owners a markup isn't cheap.
Also are these fuel truly tested for the stated ratings?
Dizzy28 wrote:Les Bain wrote:Duane 3NE 2NR wrote:rollingstock wrote:Duane 3NE 2NR wrote:Fuel price changes in T&T
Those are not the current fuel prices.
It is.
The last bar in each graph is the unsubsidized price.
Why is unsubsidized Premium more expensive than the current price though?
You mean cheaper
My guess is that the fuel price controls are attempting to demonstrate favor for goods and basic transportation (diesel) over passenger vehicles (super) over luxury vehicles (premium).Les Bain wrote:Dizzy28 wrote:Les Bain wrote:Duane 3NE 2NR wrote:rollingstock wrote:Duane 3NE 2NR wrote:Fuel price changes in T&T
Those are not the current fuel prices.
It is.
The last bar in each graph is the unsubsidized price.
Why is unsubsidized Premium more expensive than the current price though?
You mean cheaper
God yes, sorry.
eliteauto wrote:2WNBoost wrote:There is a deliberate push away from gasoline and diesel.
I’m pleasantly surprised at the OEM CNG options available for commercial vehicles
But the short range with the passenger car conversion kit is a turn off for me.
https://cng.co.tt/why-switch/
But is it really a deliberate push when the PM said in March of this year that CNG is dead tech and other than a CNG station being built in Tobago the network was not going to be expanded? CNG is now a stopgap measure with the Gov't saying they want to push both commercial vehicles and public transport to be electric
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