Amid escalating Middle East tensions that have driven global oil prices upward, Trinidad and Tobago’s Finance Minister Davendranath Tancoo has unequivocally stated the government will not adjust domestic fuel prices. The minister addressed concerns during his appearance at the Trinidad and Tobago Manufacturers Association’s Leadership Discussion and Networking Event in Port of Spain.
The recent surge in oil prices, triggered by intensified conflicts between a US/Israel coalition and Iran, has created widespread apprehension about potential disruptions to energy supply chains. Minister Tancoo acknowledged these developments while emphasizing Trinidad and Tobago’s limited influence over geopolitical events in the region.
“We cannot interfere with the situation in the Middle East. We have no real role as a country there,” Tancoo stated. “However, I know that the price of fuel and other energy products has increased.”
The minister characterized the situation as a “mixed blessing” for the nation, explaining that while Trinidad and Tobago produces some oil, it simultaneously imports significant portions of its fuel requirements. This dual energy dynamic creates complex economic pressures as global prices fluctuate.
“Therefore, the cost to the Government has gone up. Shipping costs have also gone up,” Tancoo elaborated. “We produce some oil and, therefore, as a result, we would have increased the take from the higher prices that have resulted.”
Tancoo described the government’s approach as “a bit of a balancing act” between increased revenue from oil exports and heightened import costs for refined fuels. While acknowledging some revenue improvement, he cautioned against excessive optimism due to corresponding cost increases.
The minister’s assurances come as Energy Minister Dr. Roodal Moonilal previously highlighted potential benefits from rising global liquefied natural gas (LNG) prices. Moonilal noted Trinidad and Tobago’s position as a net LNG exporter provides relative resilience compared to import-dependent economies during periods of global supply uncertainty.
Government officials indicate a mid-term budget review is imminent, which will further address these energy economic dynamics.