Trinidad and Tobago’s Finance Minister Davendranath Tancoo has characterized the impending 76% natural gas price increase for light industrial customers as a strategic opportunity for business optimization rather than merely a cost burden. The controversial adjustment, scheduled to take effect at month’s end, will elevate rates from US$3 to US$5.30 per MMBtu for state-owned NGC’s commercial clients.
During a January 25 press briefing at the United National Congress headquarters in Chaguanas, Minister Tancoo addressed concerns raised by the TT Manufacturers’ Association regarding potential nationwide economic repercussions. Rather than viewing the hike as purely inflationary, the minister framed it as a catalyst for operational improvements within the business sector.
“This situation presents a challenge for enterprises, including TTMA members, to critically examine their operational capabilities,” Tancoo stated. “There exists now a compelling incentive to enhance efficiencies and streamline processes to prevent passing additional costs to consumers.”
The minister defended NGC’s pricing strategy as a necessary correction after years of substantial government subsidies. He revealed that light industrial users had been receiving natural gas at rates “substantially lower” than those paid by heavy industrial sectors and far below actual extraction costs.
“While logically any input cost increase affects final product pricing, we’re establishing a more realistic price range,” Tancoo explained. “The adjustment specifically aims to align light industrial rates closer to both industrial customer prices and actual production expenses.”
Tancoo emphasized that even with the implemented increase, Trinidad and Tobago’s manufacturers would maintain a competitive advantage within the Caribbean region regarding energy costs. The minister acknowledged inevitable objections but stressed the long-term necessity of moving away from subsidized pricing models toward market-reflective rates that accurately represent the value of the national resource.