The Ministry of Finance announced that at midnight on May 10, 2019, the pump price for diesel oil will increase by 17 cents from $10.26 to $10.43 per gallon.
This price change reflects current demand and supply conditions which are influenced by a number of factors, most notably:
• Geopolitical events which have significantly stymied the production of crude oil in Venezuela and the recent US announcement that it will terminate sanction waivers to countries that import oil from Iran is expected to limit oil availability by a million barrels daily.
• Since March 2019, the gasoline output from the oil refineries in the USA has been well below the production in 2018 due to disruptions caused by fires at facilities in Texas and California.
• The demand for gasoline in North America is on an upward trend, and this is expected to continue during the summer months. Notwithstanding higher demand, gasoline is also pricier in the summer due to seasonal blends.
• OPEC and its allies are planning to meet at the end of June to discuss a way forward on oil production, and its consequential price effect, given the emerging market conditions.
The Government of Belize is monitoring the price movements and supply conditions closely and will work with the fuel industry to safeguard the pump prices paid by Belizean consumers.