Belize Ranked Among CARICOM’s Hardest Hit by Fuel Costs

A comparative review of fuel affordability across CARICOM countries is placing Belize among the more economically pressured nations in the region when it comes to the relationship between wages and the cost of gasoline.  Recent data comparing estimated minimum hourly wages against average fuel prices per gallon shows that Belizean consumers are paying some of the highest fuel costs in CARICOM relative to earnings. The analysis examined how many hours a minimum wage worker would need to work in order to purchase a single gallon of gasoline.  In an interview last week, the Prime Minister acknowledged the pressure facing consumers and explained that government has been trying to carefully balance relief measures while maintaining national revenues needed to fund public services.

Among the countries reviewed, Haiti ranked as the hardest hit, with workers reportedly needing more than eight hours of minimum wage labor to afford a gallon of fuel. Belize ranked among the next most pressured economies in the region.  The figures indicate that in Belize, a worker earning the equivalent of approximately two dollars and fifty cents U.S. per hour would need nearly three hours of labor to purchase a gallon of gasoline. That places Belize ahead of only a handful of CARICOM countries in terms of fuel affordability.  The findings sharply contrast with countries such as The Bahamas, where comparatively higher wages mean workers need less than one hour of labor to purchase a gallon of fuel.  The issue continues fueling concern locally, particularly in northern Belize, where some residents have openly stated that they prefer purchasing fuel across the border in Mexico’s Free Zone because prices remain significantly lower than those in Belize.  A closer examination of Belize’s fuel pricing structure shows that taxes account for a substantial portion of the final pump price. Fuel costs in Belize are government regulated and include acquisition costs, import duties, Revenue Replacement Duty, environmental taxes, excise taxes, General Sales Tax, and distributor margins. Economic analyses estimate that excise taxes alone make up roughly thirty-five percent of the final price paid by consumers.