Ministry of Finance Comments on Recent Increases
in Pump Prices for Fuel

In view of certain reports circulating publicly, the Ministry of Finance wishes to restate the facts about recent increases in the pump price for fuel.

The increases are due exclusively to the global acquisition costs for fuel, which have skyrocketed in recent months. While Government taxes are a necessary and significant component in what is passed on to the consumer, those taxes have not increased since April 2017, and therefore, have not affected the recent spike in pump prices that Belize has been experiencing. Rather, there are factors beyond the Government's control, and which set world oil prices, that are to blame. Thus almost all countries, including the USA, have been impacted by rising fuel prices.

While taxes have not increased since 2017, there are those who argue that they should now be decreased. This year's budget was premised on the taxes as they are, and lowering such taxes would adversely affect the budget, and removing essential funding for ministries, departments, programs, and service delivery generally to Belizeans. To give just one example, a decrease in fuel taxes by two dollars per gallon would remove 70 million dollars from the revenue, an amount that would completely de-fund the Judiciary, and the Ministries of Human Development, Agriculture, Transport & NEMO, and Works, and furthermore, public officers would not be paid and essential services provided by these Ministries to citizens would collapse.

World oil prices are reducing and Belizeans can expect to see a decrease in pump prices with the next shipment which is due by the end of next week.