Government is seeking almost $500 million to pay the fuel subsidy.
This, from Minister of Finance Davendranath Tancoo as he outlined the details of the supplementary and variation of appropriation for fiscal 2026 in the House of Representatives on Monday.
“To shield citizens from significant increases in international energy prices and maintain fuel price stability, approximately $395 million was expended on fuel subsidies during the period October 1st, 2025 to May 30th, 2026. $454 million to settle subsidy liabilities owed to the National Petroleum Marketing Company Limited and to Unipet, Mr Speaker.”
As he introduced the proposal for the supplementary and variation of appropriation for fiscal 2026, the Finance Minister noted that the 2026 budget was predicated on an average oil price of US$73.2 per barrel and natural gas of US$4.25 per mmbtu.
“Our estimation for oil and gas prices to the end of fiscal 2026 is US$85 per barrel and $4.50 per mmbtu respectively. With this and other adjustments we anticipate an increase in total revenue of $381.7 million, with an overall resulting deficit of $7 billion.”
He maintained that the Government would not make the mistake of depending on the international price of oil and gas to maintain the local economy.