LPG Increase Inevitable?

Minister with responsibility for Energy, Dr. Earl Asim Martin, while speaking at Wednesday, 31st March, 2011’s sitting of the Federal Parliament, explained that, “SOL has no recommendation before the government at this present moment for an increase in Liquid Petroleum Gas (LPG) – cooking gas.”

Minister Martin indicated that he spoke with the General Manager of SOL, the main importer of LPG and, “He has indicated to me in no uncertain terms…that SOL has no recommendation before the government at this present moment, has no recommendation for an increase in LPG. So I want to clear the air on that particular matter as it pertains to LPG as it has been making the rounds on radio, Twitter and Facebook that there is an increase…”

MiyVue.com understands that notwithstanding Minister Martin’s explanation to the nation about the rumoured increase, persons frequented their LPG retail suppliers seeking to purchase 20lb-cylinder tanks of gas.

While presenting the Budget 2011 address on 14th December, 2010, Dr. Denzil L. Douglas, Minister of Finance, explained to the nation that the aim of the government is to “achieve a primary balance surplus of at least 5.8 percent of GDP”. He noted however, that more needed to be done to achieve this goal and further indicated that one of the measures which would be taken, is the removal of the LPG subsidy. While he did not give a specific date by which the subsidy would be removed, he noted that the process would begin in 2011.

A government official, speaking with MiyVue.com on condition of anonymity, explained that because the Budget Address outlined the removal of subsidy on LPG as a measure which will be taken in 2011, the likelihood exists that the money which has to be paid for the consumer for LPG will increase.

For example, if a 20lb cylinder of LPG costs $55 to import, as it stands with the government subsidy, the customer pays only $30 for that item. The official explained, however, that if that subsidy is removed – which according to the Budget 2011 Address, it is possible that the customer would be left having to also pay for that portion which was subsidised by the government, thus an increase.

 

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