Trickle-down effect of cheaper oil slow in reaching Belizean drivers

By Alexis R. Milan
Staff Reporter

Pump prices for gasoline and diesel in Belize have dropped, but only slightly when compared to the global price of petroleum in other countries, which have enjoyed significantly cheaper prices over the past few months. Belizeans are hopeful that they may enjoy lower prices as the trend continues.

According to John Mencias, Deputy Chairman of Alba PetroCaribe Belize Energy Limited (APBEL) Belizeans have only just begun to feel the effects of lower world prices due to “shipment arrangements.”
Mencias explained that while the price of petroleum has been declining for months, gas stations in Belize are still selling shipments of fuel bought at the higher price.

He explained that while the country does not see the effect of the global dip immediately, the effects have begun to show with diesel now under $10 a gallon and regular and premium gasoline on their way down.
Mencias said that while he could not predict whether or not the global trend of falling fuel prices will continue, or for how long, there is a good chance that prices at the pump will continue to decrease.
In an attempt to compete with shale-oil producers, the Organization of Petroleum Exporting Countries (OPEC) have decided not to cut the production of oil, allowing prices to fall.

According to the International Monetary Fund (IMF), Kuwait, Qatar and the United Arab Emirates can break even with crude oil at US $70 a barrel but Venezuela, Russia, Iran and Nigeria would all need crude to be priced at over US $100 a barrel to stay viable. .

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