00:00Finance Minister Davindranath Tanku tells TV6 News that for part of fiscal 2026, the price of crude oil and natural
00:08gas will be below the budgeted price and that recently, as a result of international developments, the prices are higher
00:14than budgeted.
00:15However, the finance minister said this obviously means that the revenue from sales would increase, but this must be tempered
00:23by several realities.
00:25The finance minister was responding to questions from TV6 News on Tuesday as global oil prices are now averaging at
00:32around U.S. $113 per barrel for Brent crude and U.S. $109 per barrel for WTI crude as a
00:39result of the impact of the ongoing war in the Middle East.
00:43The government partly based its 2026 budget on an oil price of U.S. $73.25 per barrel.
00:52TV6 News has sought to find out from Finance Minister Tanku if this means Trinidad and Tobago is earning significantly
00:58more from oil at this time and how is the government managing any increased revenue from Trinidad and Tobago's oil
01:06at this time?
01:06Finance Minister Tanku said that when the PNM administration shut down the petrotrain refinery, they forced the country to import
01:14products we had produced for generations, including lubricants, bitumen and even vehicle fuel.
01:21The finance minister added that Trinidad and Tobago buys those on the international market now so that Trinidad and Tobago
01:28is now paying higher prices for those products.
01:32The former PNM administration did not succeed in its efforts to sell or lease the state-owned oil refinery after
01:39it closed it in late 2018 as part of what the then-PNM administration called the restructuring of the state
01:46-owned oil company.
01:48The UNC-led government has promised it will reopen the refinery.
01:52Finance Minister Tanku said in reference to the present higher crude oil prices that, quote,
01:57If the PNM had not shut down the refinery, the benefit to the country would have been significantly more, end
02:04quote.
02:05The finance minister also said, quote,
02:07But again, because of the PNM negligence of the agricultural sector, this country reportedly imports over TT$7.3 billion
02:16of food.
02:17Given increased shipping costs, it means that as a country, we now have to pay more for imported food as
02:24well, end quote.
02:26Finance Minister Tanku added that higher shipping costs will also impact other imported products, and this will cause increased inflationary
02:34pressure on prices.
02:35As he also said, importantly, too, is a requirement in law for 60% of the price above the budgeted
02:43price to be deposited into the HSF, the Heritage and Stabilization Fund.
02:48Finance Minister Tanku said the government is currently collating data to determine realistically what revenues Trinidad and Tobago will actually
02:57collect.
02:57However, he also said he wanted to caution that this is a temporary situation which will settle at some point
03:03and revert to normal.
03:05As the UNC-led government continues to face criticism from the opposition about the current levels of economic activity in
03:13Trinidad and Tobago,
03:14Finance Minister Tanku said, quote, there's much to be fixed in our economy and much structural damage caused by PNM
03:22mismanagement that we are fixing, end quote.
03:25Finance Minister Tanku told TV6 News that he is mandated by Prime Minister Kamala-Pasad-Basasa to ensure that this
03:32short-term increase must be managed and will be managed responsibly in light of the considerations he has highlighted.
03:41June Brown, TV6 News.
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