Dominica expects savings on oil by year-end
by Paul Charles
Caribbean Net News Dominica Correspondent
Monday, September 12, 2005
ROSEAU, Dominica: Dominica’s Energy
Minister, Reginald Austrie, disclosed on Saturday that his country would in
three months begin reaping the benefits from the PetroCaribe deal signed with
Venezuela last week.
Austrie was one of several Caricom Energy
Ministers in Jamaica endorsing Venezuelan President Hugo Chavez’s offer of
cheaper oil to the region.
Austire said the bilateral agreement between
Dominica and Caracas involves the importation of 1,000 barrels of oil per day
and other petroleum products.
He said the gains in the new initiative
would arise from the “reduction in the cost entailed in the price build up”.
“From the time the product leaves the point of shipment to the final cost at
the pump, there are a number of costs built up into that price,” he said.
He explained that the government to
government agreement had eliminated the middleman, leading to a reduction in
the US$3.82 per gallon for fuel paid at the local gas stations.
The government official also noted that the
deal allows for a 25-year credit facility which would provide some budgetary
support for the cash-strapped island.
“Some of the monies under the credit
arrangements can be used for budgetary support” he said.
Austrie explained that the savings accrued would be injected into education,
health and other areas of development.
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