PP government has no plans to cut fuel subsidy of $4B: Dookeran

The government of Trinidad and Tobago is spending $4 billion a year on subdiies for gasoline and diesel fuel but is not planning to cut the subsidy or increasing the price of fuel.

Finance Minister Winston Dookeran revealed the figure Thursday at the post cabinet media briefing.

He added, "What we are searching for on that issue is how to finance that deficit that has developed over the few years. Already the Ministry of Finance is advancing an additional sum of $400 million a month in order to try and deal with it."

He said the Government will seek to borrow money to pay the difference.

Dookeran said he has to balance demands for higher wages with others, including arrears on the fuel subsidy.

"I believe it was since 2004 thereabouts this matter began to develop and has reached a level of near $4 billion and now I, as Minister of Finance, am engaged in finding a permanent solution to that problem," Dookeran told reporters.

The previous Manning PNM administration had planned to expand the use of Compressed Natural Gas (CNG) to cut down on the cost of the fuel subsidy.

Carolyn Seepersad-Bachan told the media during her tenure as the Energy Minister in the People's Partnership government she introduced incentives for CNG.

"Let's get it right. If they had started this plan some time ago and pursued it with an aggressive manner, we would not be in the situation we are in today," she said.