Energy Ministry: No increase in cooking gas prices

THE Energy Ministry on Saturday echoed statements made in the Senate last Tuesday by Energy Minister Franklin Khan that there will be no increase in the retail prices of LPG used for cooking gas. Khan made his statements in response to a matter on the adjournment of the Senate, raised by Opposition Senator Wade Mark.

In a statement, the ministry said Khan's comments dealt with the upcoming liberalisation of the domestic fuels market that was mentioned in the 2020/2021 budget, last October, by Finance Minister Colm Imbert. Khan's response to Mark covered, among other matters, the topics of LPG subsidies and the retail price of LPG tanks used for cooking gas.

The ministry said the comments made by Khan in relation to the international prices of LPG were to reiterate that the retail price of LPG on the domestic market is heavily subsidised.

The ministry advised that "only the pricing mechanism at which the National Petroleum Marketing Company Limited (NPMC) purchases LPG for supply to the local market is being considered for adjustment at this time so that it is reflective of market prices on an ongoing basis."

When this pricing is adjusted, the ministry continued, "NPMC will continue to provide LPG to the local market at a significantly lower price than the purchase price." The ministry said, "In this regard, the anticipated extra cost for LPG will continue to be borne by the Government of the Republic of TT by way of the Petroleum Production Levy and Subsidy Act, and will not be borne by the general public."

The ministry added that Khan assured the public that the retail price of LPG tanks used for cooking gas will remain at the current price of $21 for a 20lb tank and $105 for a 100lb tank (plus $25 for transport and handling costs for the 100 lb cylinder).

The ministry's statements follows shares on social media of a video clip of Khan in the Senate with people mistakenly claiming he had announced price increases on cooking gas.