Explanations Of The Government On Fuel Prices

Haiti - Economy : Explanations of the Government on fuel prices
(Haiti Libre) - 07/03/2015 10:50:27

Face the large fluctuations in oil prices on the international market, which occurred in a context of high volatility, which resulted in a significant drop and sudden in January [48.1 dollars per barrel], followed by an equally rapid rise in February [$57.9], the Government, in the interests of transparency and outreach, provide explanations on the impact of these fluctuations on the Haitian economy and prices at the pump.



This rise in the crude oil prices has involved an increase of 19% on average of CIF import price between the two latest arrivals from January 24 and February 21, 2015 in Haiti; as shown in the graph above.

Meanwhile, from January to February 2015, the exchange rate has increased from 45.5596 gourdes (BRH Reference Rate of 24 January 2015) for a dollar at 47.0254 gourdes (Reference Rate BRH 21 February 2015), a depreciation of 3 %;

In total between the arrival of 24 January and 21 February the CIF prices of all products increased by 20.87% for gasoline, 19.01% for diesel and 17.46% for kerosene.

The Government explained by referring to the "automatic price adjustment mechanism" in effect, to the available information on the latest arrivals and the depreciation of the exchange, that the price of diesel per gallon at the pump would normally pass from 157 gourdes to 180 gourdes, the kerosene from 156 gourdes to 164 gourdes, while gasoline 95 is expected to remain to 195 gourdes. Stressing that at present without price change, the loss per gallon is of 23.24 gourdes for gazoil and 8.13 gourds on kerosene.

However, the Government together with the transport unions are considering the establishment of a subsidy system through transporters, which should allow to target in particular, users of public transit and maintain prices with no increase.

It should be noted that the price gap with the Dominican Republic widened due to the weekly adjustments practiced by the neighboring country and that in Haiti, the difference is now 19.20 Gdes less for Gasoline, 17 Gdes less for Diesel and 3 Gdes more for kerosene.

Stabilization margin in price structures, arrival of February 21, 2015

GAZOLINE 95



IMPORT 21/02/15 Currency Exchange: 47.1500 Gdes



ACAMAR     For usd $ 1.0000



ELEMENTS                  (usd $)    (Gdes)



1-CIF Price                   2.0406     96.2143

2-Financial Fees               0.0918     4.3296

3-Total Value for Customs        2.1324     100.5439

4-Verification fees         0.1066     5.0272

5-Customs duties              0.8530     40.2176

6-Harbor charges               0.0100     0.4715

7-Excise duties               0.0701     3.3066

8-Price Ex-Douane               3.1721     149.5668

9-Fuel royalty                   0.0212     1.0000

10-Margins Companies             0.2624     12.3722

11-Transport Province              0.0331     1.5602

12-Margins Distributor             0.3326     15.6821

13-Sub Total                   3.8214     180.1813

14-Variable Excise               0.1442     6.8000

15-To Reimburse               0.0000     0.0000

16- Stabilization margins (+/-)     0.1701     8.0187

17-Pump prices                3.9657     195.0000



Structure prepared for the arrival of February 21, 2015





GASOIL



IMPORT 21/02/15 Currency Exchange: 47.1500 Gdes



ACAMAR     For usd $ 1.0000



ELEMENTS                  (usd $)    (Gdes))



1-CIF Price                   2.0806     98.1003

2-Financial Fees               0.0936     4.4145

3-Total Value for Customs         2.1742     102.5148

4-Verification fees               0.1087     5.1257

5-Customs duties               0.3261     15.3772

6-Harbor charges               0.0100     0.4715

7-Excise duties               0.5302     25.0000

8-Price Ex-Douane               3.1493     148.4893

9-Fuel royalty                   0.0212     1.0000

10-Margins Companies              0.2004     9.4489

11-Transport Province              0.0331     1.5602

12-Margins Distributor              0.3341     15.7505

13-Sub Total                  3.7380     176.2488

14-Variable Excise               0.0848     4.0000

15-To Reimburse               0.0000     0.0000

16- Stabilization margins (+/-)       -0.4931    -23.2488

17-Pump prices                 3.3298     157.0000



Structure prepared for the arrival of February 21, 2015





KEROSENE



IMPORT 21/02/15 Currency Exchange: 47.1500 Gdes



ACAMAR     For usd $ 1.0000



ELEMENTS                  (usd $)    (Gdes)



1-CIF Price                   2.1006     99.0433

2-Financial Fees                      0.0945     4.4569

3-Total Value for Customs          2.1951     103.5002

4-Verification fees                  0.1098     5.1750

5-Customs duties               0.2195     10.3500

6-Harbor charges               0.0100     0.4715

7-Excise duties               0.4878     23.0000

8-Fuel royalty              3.0222     142.4968

9-Margins Companies              0.1731     8.1617

10-Transport Province              0.0331     1.5602

11-ransport Province              0.2433     11.4716

12-Sub Total                   3.4717     163.6902

13-Variable Excise               0.0093     0.4400

14-To Reimburse               0.0000     0.0000

15- Stabilization margins (+/-)        -0.1724 -8.1302

16-Pump prices                 3.3086     156.0000