PM Addresses Rising Cost of Living in National Address

In a wide-ranging 12-minute national address, Prime Minister John Briceno, spoke with reassurances to the Belizean people as the global events are now being felt in Belize, including rising inflation and fuel costs.  In the pre-recorded statement, Briceño acknowledged the frustration felt, an issue he says is being driven largely by external forces.  Addressing inflation, the Prime Minister emphasized that much of the pressure being felt locally is not generated within Belize but rather imported through higher global prices for goods and services.  He explained that as a small, import-dependent economy, Belize remains vulnerable to fluctuations in international markets, particularly in areas such as food, shipping, and energy.

John Briceño, Prime Minister of Belize: “In government, as in your own household, there are some things that are beyond our control. Global conflicts, inflation, instability and variations to the international order are examples of grave issues that arise outside of direct control. Like you, I am deeply concerned by the recent developments in the Middle East. This week marks two months since the latest Middle East conflict commenced. Today, there is no end in sight, and we’re not sure when normalcy will return. Cabinet and I have been constantly reviewing the many areas where Belize, as a small open economy, is vulnerable to the direct and indirect consequences of these hostilities, as well as to other global and regional developments. As we all know, Belize is vulnerable to these shocks. Chief among them is our access to fuel and the price we pay for it. Most concerning is our vulnerability to inflation, where the money we earn buys less of what we need. Even the IMF have said that Belize imports our inflation. In other words, certain price increases are imposed upon us, and all we can do is to manage our response in a way that is achievable and affordable. Every Belizean is negatively impacted by inflation.”

Prime Minister Briceno also tackled the issue of fuel prices, noting that while Belizeans continue to feel the strain at the pumps, those prices are closely tied to acquisition costs on the global market.  According to the Prime Minister, Government continues to monitor fuel pricing and is working to balance the need for affordability with the realities of international oil prices and supply costs.

John Briceño, Prime Minister of Belize: “In the last two months, world oil prices have surged by 76% from about 60 US dollars to 105 US dollars per barrel. All this considered, let me assure you that there is no immediate threat to our fuel supply. While no buyer can be protected from what we see on the news every day about fuel supply, Belize’s supply currently estimated at some 5 million gallons per month, is so far assured. Yes, there have been and will continue to be adjustments to the price at the pump and to the prices of certain products and services related to fuel costs. Let me address the issue of the price we pay at the pump. When the acquisition cost of fuel rises, that is to say, the price paid by Puma and its suppliers, the excise tax collected by the government does not rise. This is a fixed amount and this amount, the excise tax collected, has been significantly reduced by the government since the start of this crisis. In fact, the excise tax charged on regular gasoline has been cut by 68 cents, and the excise tax charged on diesel has been cut by $1.55. These two tax reductions amount to $4.7 million per month, or a projected $60 million for this budget year. I assure you that if the acquisition costs for fuel continues to rise, the Cabinet will consider further adjustments. We are mindful that if oil prices continue to rise, the government may need to introduce more substantial cost-saving measures. If and when that time comes, we will, of course, engage with our partners to ensure proper consultations. Thankfully, we are not there yet.”

Prime Minister was expected to speak on the tension in the transportation sector, however, that was not the case as was indicated over the weekend.