PARAMARIBO, Suriname, CMC – The Suriname government says it will save approximately US$10.9 million annually on hydro and thermal energy as it moves to phase out electricity and gas subsidies.
Natural Resources Minister, David Abiamofo, told the National Assembly on Thursday that new electricity tariffs, which had been introduced in 2021, would be phased out in three phases within two years.
“In present circumstances, that subsidy will reach SRD3.2 billion (One SRD=US$0.03 cents) in 2023. An increase and a heavy burden on the government budget,” Abiamofo said, adding that proposals by the International Monetary Fund (IMF) would increase the price for the commodity in four phases by 20 percent each time.
Abiamofo acknowledged that while this will reduce the subsidy amount, after an evaluation of a one-year introduction of the new method, the government has started a process to look at aspects in the cost price calculation that could lead to a reduction in the cost price.
Abiamofo told legislators that the government knew from the beginning that the price of thermal energy supplied by SPCS had to be reduced and that discussions have so far led to a reduction.
While Abiamofo did not indicate the price reduction amount, opposition legislator Rabin Parmessar said the state pays the state-owned oil company, Staatsolie, 0.2 cents per kilowatt-hour for the supply of energy.
The Minister said that the state now pays 1.97 cents.
Abiamofo said that gas is subsidized with electricity revenue and that the government will subsidize SRD898.5 million in gas this year.
He said the list of new gas prices already circulating in the media relates to the cost price and not the selling price, promising that a system will be introduced whereby for the first time in history, Surinamese will pay the same gas price regardless of where in Suriname they live.
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