With the restart of the PetroCaribe program, St Vincent’s liquefied petroleum gas imports from Venezuela will resume.
PetroCaribe is an oil alliance of 18 Caribbean states in which Venezuela offers to supply oil based on an agreement for concessionary pricing.
All alliance members would receive a 35 percent discount on diesel and cooking gas imports under the new program.
St Vincent Finance Minister Camilo Gonsalves said Thursday the sanctions placed on Venezuela by the US government forced the program to be halted.
According to Gonsalves, PDVSA SVG will receive 3500 barrels of LPG per year, whereas it received 3000 barrels under the previous program.
“This will keep cooking gas prices low. There are many sellers in out districts who charge more than they should when cabinets set the price”.
The possibility of price gouging will be less likely when PDVSA sells gas at a fixed price, Gonsalves said.
In June 2018, PetroCaribe supplies to most Caribbean nations were suspended due to falling Venezuelan crude output, US political pressure on Caracas and recipient countries, and falling world oil and gas prices, all of which made it more cost-effective to purchase oil elsewhere.
Cuba, however, continued to receive oil under a separate programme element.
