Reprinted from Caribbean Net News
caribbeannetnews.com
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.
Previous Page Print This Page.
Copyright© 2007 Caribbean Net News at www.caribbeannetnews.com All Rights Reserved
License is granted for free print and distribution.
