Minister in the Ministry of Finance Dr Kennedy Swaratsingh says the Government’s decision to reduce the price of Super gasoline by one dollar in 2025 was aimed at protecting citizens from higher transportation, food and living expenses.
Speaking in the Senate on Tuesday, he said Government has maintained the reduced fuel price despite rising international costs and increased exposure to global markets.
“In Trinidad and Tobago, this government has kept the price of fuel steady. We have done so even though the cost of importing refined fuel has increased, and even though we are more exposed to international markets following the former administration’s closure of Petrotrin, which eliminated domestic refining capacity, thereby reducing economic resilience and flexibility as a country. So today, when international fuel prices rise, Trinidad and Tobago feels it more directly.”
Minister Swaratsingh added that maintaining the reduced fuel price places a significant cost on the State.
“Based on current estimates, this policy is expected to result in an additional subsidy requirement of approximately TT$318 million for fiscal 2026. But this government is prepared to carry that cost, because we understand that increase in fuel prices would have a direct and immediate impact on transportation, food prices, and overall cost of living.”
He, however, noted that the actual impact on Government expenditure will depend on payments made during the fiscal year.
He further noted that while higher international oil prices could increase the fuel subsidy bill, they could also generate additional energy revenue for the State.
“Rising global fuel prices has increased the government’s subsidy liability. From October 2025 to present, the estimated subsidy liability for fiscal year 2026 has increased due to movement in international oil prices. However, the actual impact on expenditure will depend on the payments made during the fiscal year, and these payments will continue to be managed carefully based on available fiscal space.”
He said the overall fiscal impact of maintaining the reduced Super gasoline price will be assessed and reported at the end of the fiscal year.