The Trinidad and Tobago Government would be unable to sustain its ongoing fuel subsidy if current oil prices remain soaring high.
For financial year 2022, the Government paid TT$2.6 billion to subsidise fuel. And with crude oil prices currently at US$90 per barrel, the government anticipates that next year’s subsidy will be around TT$500 million less. Hence, the Government is looking at capping the subsidies.
During the Spotlight on the Economy Forum, Finance Minister Colm Imbert announced that the government is looking at capping the fuel subsidy at TT$1 billion, which is 54.1% of the TT$2.18 billion projected for 2023’s subsidy.
“I don’t think that we as a country can afford that. As the Prime Minister has indicated, we have to limit the subsidy we can pay, and the rest will be used for other purposes. We already think that a reasonable cap for the fuel subsidy should be $1 billion,” he said, noting that other facilities such as electricity are already being subsidized.
Imbert added that the government is prudent in spending for the country’s good.
Further details are expected to be publicized during Budget Day on September 26, 2022.
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