Time
to reconsider $2b fuel subsidy, says Rowley
Port Spain
Petroleumworldtt.com
01 20 08
Trade
and Industry Minister Dr Keith Rowley says the
annual subsidy on automobile fuel prices is
now costing the State $2 billion a year.
And he says the time has now come for the Government
to consider whether it should be spending this
much money subsidising the price of gasoline and
diesel.
"We have to look at that to see whether that
is the best way to spend $2 billion in our national
development," Rowley.
Rowley says this is because the Government is
purchasing 120 million barrels of oil per day to
keep the State-owned refinery, Petrotrin, operating
at its peak capacity of 240 million barrels of
oil per day and it is paying record high global
oil prices to do so.
Global oil prices are now hovering at around US$90
per barrel but had crossed the US$100 per barrel
mark late last year.
Petrotrin is now undergoing a multi-billion dollar
upgrade but until that is completed, taxpayers
have to pay for the imported oil it needs to stay
in business.
"And, in so far
as we have been buying at that price and subsidising
local transport to the
tune of $2 billion a year, the time has come in
this country to ask ourselves if that is the best
way to spend $2 billion.
"Subsiding transportation to the extent that
nobody considers fuel cost when you plan a trip
to go anywhere in this country," Rowley said.
He did so on Friday night as he contributed to
the debate on the Finance (Supplementary Appropriation)
(Bill) (2007) during the House of Representatives
sitting at the Red House, Port of Spain.
In October, the fuel subsidy had been estimated
to cost $1.5 billion a year and the Express had
reported in 2003 that it was costing taxpayers
US$1 billion for the Government to import oil to
keep Petrotrin at peak capacity.
Story
by Juhel
Browne from
Trinidad Express
Trinidad
Express
Sunday,
January 20th 2008
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