Oil prices cause discord in Trinidad

The worldwide decline in oil prices has created heated discussions in Trinidad and Tobago on whether the more than 20-percent decrease will profoundly impact the economy.

The Ministry of Energy and Energy Affairs stated on November 7 that the sale of natural gas is offsetting the loss in revenue from oil. Opposition Member of Parliament Colm Imbert responded in a letter to the Trinidad Express Newspapers that despite the government earning $4 billion from the Supplementary Petroleum Tax in 2014, every time the price of oil drops, revenue falls significantly. The Supplementary Petroleum Tax is charged on gross or chargeable income from oil, equivalent to 18-33 percent.

In addition, leader of the Movement for Social Justice party David Abdulah has voiced his concern on the effect of lower oil prices, predicting that the county’s economy will contract and fall into debt in the fiscal year of 2015-2016, alongside a lower foreign exchange rate.