On Thursday, November 5, 2020, six days before Belize’s General Election, which led to a change of government, was the last time the Ministry of Finance under the UDP adjusted the pump price for fuel. That adjustment saw the price of one of the fuel being diesel being decreased by 39 cents. Those prices were what were in place on Election Day on November 11, 2020. The actual prices were for premium gasoline, regular gasoline, diesel, kerosene, stood at $9.20, $8.86, $7.94 and $4.73 per gallon, respectively. Then came the change of government and the first shipment of fuel that arrived in the country was on November 18, 2020. At that time, the Ministry of Finance announced that the pump prices for premium gasoline and diesel would register an increase by 29 cents and 17 cents per gallon respectively. Regular Gasoline would decrease by 25 cents per gallon. That trend has remained the same where the pump prices of fuel increases with every shipment that arrives in the country. It was only on two occasions when, once, premium gasoline on December 15, 2020, decreased by 31 cents from $9.49 to $9.18 per gallon and on December 23, 2020, when as a Christmas gift, we saw regular gasoline decrease by three cents from $9.09 to $9.06 per gallon. On all other occasions, one or more of the cost of the four fuels increased.
On Monday of this week the Ministry of Finance announced that the pump price of premium gasoline would see a whopping $1.24 increase, which would see it going up to $11.64 per gallon. The prices for premium gasoline, regular gasoline, diesel and kerosene, are now at $11.64, $10.92, $10.15 and $6.75 per gallon, respectively. This means that the price for these fuels have increased by $2.44, $2.04, $2.21 and $2.03 per gallon respectively. Included in the cost we pay at the pump is the acquisition cost of the fuel and transportation cost to Belize. Then the fuel pays government: import duty, revenue replacement duty (RDD), the importer adds on a markup/profit margin, calculates GST and business tax. The transportation cost to move the fuel to the gas stations is paid by the dealer, mark-up/profit margin for the dealer who operates the gas station. All of these various costs and charges are factored/added into determining the final pump price. Government gets almost half of the pump price of fuel in taxes. The higher the pump price then the higher actual value of the taxes.
Our present Prime Minister Hon. John Briceño whose family owns fuel stations, once explained how much of the pump prices government collects in taxes. He did so when he was the Leader of the Opposition. Back then, he was campaigning to become Prime Minister. At that time, he used to be the biggest crusaders for the government to reduce the taxes on fuel and thereby make the cost of fuel to the Belizean consumers cheaper. A few weeks ago, Channel 5’s General Manager, Marleni Cuellar asked him why he has not done so. PM Briceño’s answer was that his government promised the IMF to keep the taxes on fuel where it is. Briceño went further to say that that was what would happen for the next one or two years until they can close a $500 million-dollar gap. Our question for the Prime Minister after hearing that statement has to be, DID WE VOTE THE IMF OR HIM AND THE PUP INTO GOVERNMENT?
