WILLEMSTAD - The fuel subsidy will be extended for three months. The Curaçao government made this announcement. On November 13, it will be checked again whether the 24 cents subsidy per liter of fuel will be maintained.
The subsidy was introduced in the second quarter of this year due to the drastic rise in fuel prices worldwide.
To prevent a further increase, the Minister of Finance has submitted a proposal to the Council of Ministers to continue the subsidy for another three months.
An analysis has shown that the current fuel price of USD 101.62 per barrel is at almost the same price level as in May, when the subsidy was introduced.
The expected loss of the support measures for fuel prices could be charged to the turnover tax revenue for 2022 of 539 million guilders. This revenue is approximately 90 million guilders higher than the 450 million that was set in the 2022 budget.
According to the Ministry of Finance, it can therefore be stated that the provision of this temporary mitigation has taken place in a responsible manner.
The calculation of fuel prices consists of several components, including taxes and excise duties. Minister Silvania, responsible for both components, has in turn stopped collecting sales tax on fuel prices. In addition, the excise tax on gasoline has been reduced and the total sales tax amount on gasoline has also been reduced.