BELMOPAN, Belize, CMC – Prime Minister John Briceño says while there is no “immediate threat” to Belize’s fuel supply, the country cannot remain immune from the high oil prices on the global market.
In a video statement addressing the ripple effects of rising global oil prices on Belizeans, Prime Minister Briceño said that over the last two months, oil prices have surged by 75 percent, reaching US$105 a barrel.
“All this considered, let me assure you that there is no immediate threat to our fuel supply. While no buyer can be protected from what we see on the news every day about fuel supply, Belize’s supply, currently estimated at some five million dollars a month, is so far assured.”
Briceño said there have been, and will continue to be, adjustments to pump prices and to the prices of certain products and services related to fuel costs, as he sought to address the costs motorists pay at the pumps.
“When the acquisition price rises…the excise tax collected by the government does not rise. This is a fixed amount, and this amount, the excise tax collected, has been significantly reduced by the government since this crisis started.”
Prime Minister Briceño said, in fact, the excise tax charged on regular gasoline has been cut by BDZ$0.68 cents (One Belize dollar = 0.49 cents), and that BDZ$1.50 cents has cut the excise tax on diesel.
“These two tax reductions amount to BDZ$4.7 million a month or a projected BDZ$60 million dollars for this budget year. I assure you that if the acquisition cost for fuel continues to rise, the Cabinet will consider further adjustments. We are mindful that if oil prices continue to rise, then the government may need to introduce more substantial cost-saving measures,” Prime Minister Briceño said.
In his video statement, Prime Minister Briceño addressed the ongoing discussions between the Belize Bus Association and the Cabinet’s broader response to rising costs. He said the government will freeze BDZ$30 million in capital projects, cut another BDZ$25 million from goods and services, and slash travel, shifting international meetings online.
“About domestic transportation and the recent issues with our bus operators concerning bus fares, the Cabinet determined that the nascent National Bus Company will remain at current rates.
“For private bus operators that demanded increases, the government has approved a generous subsidy that specifically covers the incremental fuel cost. Over the next three months, the government will provide a three-dollar fuel subsidy to all private bus operators.”
Prime Minister Briceño said this measure is intended to prevent a major increase in bus fares for commuters traveling within or outside their districts during this period.
“And I propose to go even further to tighten our belts so government embraces its fair share of sacrifice,” he said, adding that the Cabinet had agreed to defer 30 million dollars in capital expenditures previously programmed for this budget year.
“Secondly, 25 million dollars will be cut from goods and services allocated across all ministries and departments. Thirdly, we will continue to tighten expenditure by significantly reducing international travel, thereby requiring less subsistence for meetings. This will be achieved by insisting on holding meetings virtually and organizing them.
“We will also continue to cut the government’s fuel bill by limiting the use of government vehicles. At the end of the first quarter, we will assess government performance to determine what other measures are necessary. While we have made these hard adjustments, I want to emphasize that our social safety net spending will not be disrupted,” Prime Minister Briceño added.
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