BELMOPAN, Belize, February 29, 2008 – It’s had to pay more for fuel, but the Belize government said it won’t be passing on the increase to consumers. Instead it will reduce the fuel tax.
The Ministry of Finance announced in a statement that even though the latest fuel shipment cost the government more, it will absorb the price hike by reducing the Revenue Replacement Duty that is applied to gasoline and diesel.
It indicated that while the increase on gasoline was nominal, the cost of diesel jumped by 23 cents per gallon. Diesel is used extensively in agriculture, transportation and industry. “By keeping the cost of diesel at its lowest level, Government aims at keeping inflation at bay,” the government said.
“The Government is aware that fuel prices are still high but these are on account of the movement of international prices and not on account of taxes. The situation will continue to be monitored and any future decrease in cost will be passed on to the pump,” the release added.