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Haiti - Economy : The Government begins the consultations on the fuels price
13/09/2019 10:43:35

Haiti - Economy : The Government begins the consultations on the fuels price
With a debt of several billion Gourdes due to the oil companies as reimbursement of the subsidy, which is supported on the front line by these companies the Government has difficulties in meeting its commitments and to repay the companies https://www.icihaiti.com/en/news-28580-icihaiti-economy-the-state-paid-less-than-30-of-its-debts-to-the-oil-companies.html https://www.haitilibre.com/en/news-27869-haiti-economy-the-government-is-no-longer-able-to-pay-its-debts-to-oil-companies.html which dries up their cash and reduces fuel orders in the country, causing scarcity on the local market https://www.haitilibre.com/en/news-27779-haiti-flash-imports-of-petroleum-products-new-endangered-in-the-country.html

As former Prime Minister Jean Michel Lapin said, "a decision must be made to find the best solution, in a consensus, to find a solution". The State cannot continue to subsidize fuel for individuals and businesses, pay the product cheaper than all other countries in the region https://www.haitilibre.com/en/news-28671-haiti-economy-the-fuel-subsidy-cost-7-billion-per-month-to-the-state.html without regard to international market prices.

To this end, acing Prime Minister Jean-Michel Lapin accompanied by Ronald Décember, the resigning Minister of Economy and Finance met Thursday unionists, members of the Commission for modernization of public transport (installed in 2015 hhttps://www.haitilibre.com/en/news-13190-haiti-politic-national-commission-for-the-modernization-of-public-transit.html ) in view of a progressive reduction in the amount of the subsidy. The first step is to make people aware of the need to adjust fuel prices at the pump.

As an example, for every gallon of diesel sold at the pump, the State adds 85 gourdes and receives no tax, what costs him of each cargo nearly 2 billion gourdes to prevent prices from rising at the pump, to which is added the lack to gain of taxs for the Public Treasury whose cash is almost empty...

Nothing conclusive came out of this first meeting, the trade unionists of the Commission remaining on their position. Another meeting is scheduled this Friday.

Recall that in 2017 an agreement was signed with the unions https://www.haitilibre.com/en/news-20957-haiti-flash-increase-in-fuels-this-is-only-the-beginning.html in which Article 9 stipulated an adjustment of +6 Gdes for the gallon of gasoline, +5 Gdes for the gallon of diesel and +4 Gdes for the gallon of Keroène to each arrival of an oil tanker in Haiti until the elimination of the subsidy that will be followed by the application of the decree of 9 March 1995 governing the adjustment of fuel prices according to the international market price (downward or upward)...

In fact, this agreement could not be implemented because of the fear of new riots in the country...

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