A further reduction of government’s fuel subsidy rolled into effect at midnight, resulting in higher prices at the pump.

Motorists will now pay a $1 increase to $6.75 and $5.97  for premium and super gasoline respectively, while Diesel sees a 50cent adjustment to $3.91 per litre. Kerosene moves to $3.50 while LPG prices remain fixed.

The price increase comes on the same day thousands of students return to physical classes for the new school term, many of them for the first time since March 2020.

As he made the announcement back on April 8th, Minister Imbert revealed that presently, the highest subsidy levels are on LPG and kerosene but there remains substantial subsidy on fuels used in transportation.

“By way of example, if unsubsidized, the retail prices of premium gasoline should vary from $6.18 per litre at an oil price of US$80 per barrel to $7.58 per litre at an oil price of US$100 per barrel. Similarly, using the same range of oil prices, the unsubsidised prices of super gasoline vary from $6.09 per litre to $7.46 per litre. Unsubsidised diesel prices vary from $5.35 per litre at an oil price of US$80 per barrel to $6.58 per litre at an oil price of US$100 per barrel,” he said.

“Accordingly, the fuel subsidy liability for the Government, i.e. the money that must be found from general tax revenues to subsidize the 1 billion litres of fuel consumed annually in Trinidad and Tobago varies from $922 million at an oil price of US$80 per barrel to $1.94 billion at an oil price of US$100 per barrel,” the Minister further revealed.

Government will also waive taxes and customs duty on suitably sized imported hybrid motor cars, both new and used, beginning in May.