Atlantic LNG ships 4500th milestone
cargo

LNG Prime Staff
April 11, 2022

Atlantic LNG Point Fortin liquefaction facility has shipped the 4500th since it started operations in April 1999.

Almost 23 years after delivering its first cargo, the plant with a capacity of about 15 million tonnes per year loaded its 4500th cargo on April 8 onto the 174,000-cbm Cool Discoverer.

According to its AIS data provided by VesselsValue, the 2020-built Cool Discoverer, owned by Thenamaris, was early on Monday heading towards the Gulf of Mexico.

The Point Fortin facility ships cargoes to multiple worldwide destinations in Europe, USA, South America, Asia, and the Caribbean.

Shell and BP have the biggest stakes in the four Atlantic LNG trains, followed by NGC and Chinese Investment Corporation (CIC).

The facility, which has been experiencing supply issues due to dwindling domestic gas reserves, recently started receiving much-needed natural gas supplies from Shell’s Colibri project offshore Trinidad and Tobago.

Trinidad’s government and partners in the facility have been in talks to find solutions to ensure the future supply to the facility, most notably for the first train, and to simplify the shareholding structure.

Trinidad’s energy ministry signed a deal in January with Shell, BP, and NGC following discussions as the parties work towards a restructuring of Atlantic LNG.

The ministry said in January that the parties were planning to sign the definitive restructuring deals by the end of June.

This four-train liquefaction facility with a total capacity of 15 million metric tonnes per annum (mtpa) of LNG includes a port area with two jetties, an approach channel used by LNGCs to berth at the jetty, and a turning basin. Each jetty can accommodate an LNG carrier of approximately 171,000 cubic metres in size.

CEO Ron Adams said this is a testimony to the crucial role the country continues to play in the global LNG business.

“It’s a big day for us, delivering 4500 cargoes is a significant milestone marking a long legacy of value creation for the people of Trinidad and Tobago.

“Our commitment to community, country, and the exciting opportunities we see for our business as global LNG demand rises is all part of the delivery of every cargo. We know just how important it is to play our part in the global energy transition.”

 

PPGPL, NGC take advantage of price rise

Apr 24 2022

Point Lisas Industrial Estate companies are operating at capacity amid record global prices for Ammonia and high Methanol prices which boosted profits for the National Gas Company Limited (NGC) and Phoenix Park Gas Processors Limited (PPGPL).

PPGPL released its audited financial statement for the year ended December 31, 2021 which recorded an after-tax profit of TT $512.8 million, a 373.6 per cent increase over the 2020 results of TT$6.4 million (excluding 2021: impairment gain of TT$302.1million; 2020: impairment loss of TT$38.1 million).

Earnings per share increased from the 2020 TT$0.04 to TT$3.31 at end of 2021.  PPGPL recorded a profit after tax of TT$545.0 million at year end 2021, a 366.6 per cent improvement compared to TT$116.8 million for the corresponding period of 2020.

This strong performance reflected higher recognised Mont Belvieu NGL product prices, which were 112.3 per cent greater than 2020, and improved NGL production from the higher margin gas processing segment.

NGL production from gas processing was 11.8 per cent higher than 2020, driven by a 7.7 per cent increase in gas volumes for processing (2021: 1,141 million standard cubic feet per day). Results show five per cent increase in the NGL content of the gas stream.

 PPGPL President Dominic Rampersad reported an increase in the gas available for processing by PPGPL, a direct result of the Petrochemical plants operating at higher output.

“What ..we have seen happening on the estate, because ammonia prices are so high, methanol prices are high, .. those companies that may have been operating at less than full capacity .. have ramped up capacity. So the demand on the estate has actually ramped up.

“What we have also been seeing on the LNG side is that they tend to fluctuate because of their maintenance and different things, but I don’t think what we are seeing on the estate is a function of what is happening at the LNG, I think it is a function of what is happening downstream.”

Output from the Petrochemical sector has returned to pre-COVID days.

“The percentage has gone up from my perspective, .. back to what it was pre-COVID .. one of the other things ..that has caused the increase in our volumes is the liquid content in the gas, that we have seen …”

Part of last year’s success is the strategy of the NGC to have more liquid rich gas come to the estate.

“… more BHP gas coming into the system… less Shell gas coming into the system from the east coast and more bpTT gas has been coming into the system consistent with … contractual obligations to the NGC …”

He agreed from PPGPL’s perspective it makes more sense to have more natural gas sent to the Point Lisas Industrial Estate than to LNG because his company gets more revenue from processing the gas rich in liquids rather than what it gets from natural gas liquids as a by product of the LNG process.

“The long and short answer is simply yes.”.

If that meant the NGC’ loss of a quarter billion dollars on an attempt to save train 1 rather than focus on the Estate was a bad strategic move Rampersad said,

“To be honest, … I am not privy to the assessment done by the NGC into Train 1, so I can’t give you an honest answer to that. I really was not privy to that information, so I don’t know the economics of what was done. ”From a PPGPL perspective the more gas that flows to Pt Lisas, we benefit more from that, given our contractual arrangements with NGC and our contractual arrangements with Atlantic. So the more gas that comes through the gas processing at the inlet benefits us more than, even if you were to send more gas to Atlantic, .. our profit .. from those NGLs that come from Atlantic, will be less than we get from our gas.”

 

Phoenix Park, TTNGL Invest in planet Earth

Energy companies such as Phoenix Park Gas Processing Ltd (PPGPL) and its broader group TT National Gas Ltd (TTNGL) are heeding a clarion call from Earth Day to Invest in our Planet, to value making the earth cleaner for present and future generations. In its latest public update, officials touched on plans, policies and initiatives to make investments to preserve the planet.

Aware that if trends in energy use continues, fossil fuels will remain the dominant fuel source until 2050, TTNGL chairman Conrad Enill said there will be a focus on investing in remaining relevant in a world transitioning to clean energy, and assisting in that transition.

“We have two objectives, be relevant and understand what is taking place but at the same time transition in tandem with the rest of the world as we go through the changes that the world is looking at,”

“The key elements of our green agenda are based on our commitment to support the COP21 promise on total emission reduction. These elements are in the areas of carbon storage, greenhouse gas conservation and usage; renewable energy; energy efficiency and fuel switching,” he said referring to last year’s Climate Change Conference in Scotland which the Prime Minister attended.

While he did not go into plans on these pillars, Enill added that the group would also examine the concept of “green financing” which would give priority to projects that would have elements of energy conservation, carbon reduction and other initiatives.

Issues connected to climate change have not only affected the lives of people in the region, but it has also affected how the company works.

“We are observing unprecedented climate changes in our recent history which has caused much concern. In Latin American and Caribbean region, methane concentration recorded is at its highest in over 800,000 years, but the region accounts for 10 per cent of the world’s methane emissions. We have plans for addressing this issue in this sector.”

Other challenges include ocean warming, rise in sea levels, Co2 concentration and surface temperature changes.

“This affects us, what we do and how we do it. It has created a new reality that we live in and that we must respond to.”

According to a study by UN Economic Commission for Latin America and the Caribbean (ECLAC), climate changes such as sea level rise and storm surges present real time issues to energy industry supply chains starting with the infrastructure used for procurement like oil and gas rigs.

PPGPL, in a 2016 report on managing climate change risk, also identified some effects of climate change.

The company observed that there was an increased rate of shoreline erosion which had worsened to the point that infrastructure, which included its southern fence-line right-of-way pipeline and its East to West pipeline in Dock-2 in the Gulf of Paria, were in imminent danger of being severely damaged.

TTNGL has already made contributions to tackling climate change on a policy level. In a chairman’s message in 2019, Enill said the group was involved in the development of a national energy conservation and efficiency action plan, which included TTNGL and the Ministry of Energy and Energy Industries.

In that plan it was realised that a major challenge to the promotion of renewable energy was the subsidised domestic energy products, and proposed to encourage use of green energy through fiscal support mechanisms, legislative support, government investment in green energy products, awareness drives and education and training initiatives.

PPGPL president Dominic Rampersad said that while emissions is not a real issue for the company it ensures that it still invests in the goal of contributing to the green agenda.

“A gas processing plant is what you would call a closed loop plant. You wouldn’t see vent stacks all over the place. We would vent natural gas in a manner that is environmentally friendly and because of the nature of our business we don’t have the problem of emissions. What we try to do is mitigate our energy consumption and waste water emissions. We spend a lot of money treating our waste water so that when it goes into the waterways it will be released within the specifications of OSH (occupational safety and health).”

In his presentation, Rampersad said the company invested in its people to develop sustainable plans to move forward in the best way possible. The company selected staff and invested in employees’ master’s programmes in sustainability. These students are now part of the organisation’s sustainability committee which guides the company on sustainable practices with a roadmap that not only focuses on business but the organisation’s contribution to sustainable mitigation of climate change.

“We have created a sustainability focus in the organisation which matches the Sustainable Development Goals (SDGs).”

Some of the focus on environmental sustainability included improvement of air quality throughout all buildings, development of an energy management policy in accordance with an ISO 50001 standard, monitoring greenhouse gas emissions and identifying opportunities for reduction and developing a “green” procurement platform to select sustainable sources of material, products and services.

“This is all being done in alignment across the NGC (National Gas Company) group. So we are not running off on our own and doing something. One of the key elements of the NGC group is building a synergy across the different functions of the group. We are a TT company and we are ensuring that our goals and aspirations are aligned with that of the state.”

PPGPL in its climate change risk management report said it will champion the social leadership drive in mitigating and combating climate change. The report said it had already started, through using solar-powered perimeter lighting and motion sensor-operated extractor fans, thermostat management to reduce energy consumption during low occupancy periods, replacement of old air conditioning units which consume more power and proper maintenance of air conditioning units.

 

Hydrogène de France

Apr 12 2022

Hydrogène de France (HDF Energy) acquired a 70 per cent majority stake in the NewGen project.   Kenesjay Green Ltd, the project developer, will retain the remaining 30 per cent of the share capital of NewGen, which will be jointly owned by KGL and an investment vehicle that will allow inclusion of additional local investors. When completed, the US$200+ million NewGen plant will be the world’s largest clean hydrogen producing facility of its kind, using a smart combination of solar and energy efficiency-sourced power.

“It will competitively generate carbon-free hydrogen to meet 20 per cent of the hydrogen requirement for an existing world-scale ammonia plant in the petrochemical hub of Point Lisas, Trinidad. Once up and running, the project will save approximately 200,000 tonnes of CO2 per year.”

This is the third major investment in the Caribbean this last year for HDF, which announced hybrid “Renewstable” baseload power plants using green hydrogen and solar power in French Guiana and Barbados alongside its regional partner and investor,  – RUBIS.

Commenting on the HDF majority acquisition, KGL chairman Philip Julien said: “ KGL welcomes this significant endorsement and investment in NewGen by HDF and looks forward to our collaboration and sharing of expertise. Our partnership enables improved local access to international finance and technology, optimum opportunities for local ownership and an acceleration of T&T’s energy transition commitments.”

CEO of HDF Energy Damien Havard said: “We believe we have the ideal partners in Kenesjay Green, given their extensive knowledge of the industry, business acumen and their commitment to local development.    Our investment in NewGen affirms our belief that T&T’s energy industry offers a unique opportunity for the development of world scale and cost competitive carbon-free Hydrogen. This project demonstrates that green solutions can effectively support the transition of hydrocarbon-based economies like T&T and HDF is poised to be a part of leading the change.”

 

Fuel figures

Apr 12 2022

The Oilfields Workers’ Trade Union (OWTU) is rubbishing fuel hike defence that T&T has the second-lowest fuel prices in the Caribbean, saying that citizens of those countries enjoy a better standard of living.

OWTU president Ancel Roget accused Minister of Finance Colm Imbert of deceit following a Government announcement to increase fuel prices on April 19 when children return to school after over two years.    OWTU showed that while T&T has a minimum wage of $17.50, Antigua and Barbuda pays $20.76 per hour,
St Kitts and Nevis pays $22.61, Barbados pays $29.11. Puerto Rico pays $58.23, The Bahamas pays $36.65, and the Cayman Islands pay $41.10

“They try to justify it by making comparisons with other jurisdictions,… they do not.. compare the cost of living and social safety net and .. the issue of a living wage. While the minister deceitfully tells you.. they have a choice of burdening the population or providing for the population. They choose to burden the population.”

Citizens now face this problem because the Government closed Petrotrin and its Pointe-a-Pierre refinery in December 2018. Government rejected OWTU bids to purchase the refinery to provide affordable fuel four times, lied and gave the impression that Petrotrin was leaking money and closing it would leave more funding to open schools, increase hospital beds and improve roads.

Roget said the refinery always imported oil from its inception to closure. T&T consumes approximately 30,000 barrels of fuel daily. Excluding exports, there is enough crude to refine to produce inexpensive fuel for local consumption but instead, the Government uses foreign exchange from exporting crude to import fuel for local consumption. It was time for citizens to stand with the OWTU and like-minded organisations to tell the Government that “enough is enough” and all must benefit from the fruits of the land.

“Shutting down the refinery also crippled, stifled, and stopped totally the country’s ability to provide fuel for itself. We have enough oil in this country ..to produce fuels for the country’s consumption alone on a daily basis alone.”

 

 

OWTU claims

13 April

OWTU president Ancel Roget says citizens would not have had to pay higher fuel prices if former state oil company Petrotrin’s Pointe-a-Pierre refinery was still in operation. Recalling the closure of Petrotrin in November 2018, Roget said the OWTU warned the population that the country would feel the effect of the company’s closure.

“So said, so done.”

Roget disclosed that the union did not receive a reply from Finance Minister Colm Imbert to its proposal about reactivating idle or abandoned wells of Heritage Petroleum, one of the companies formed after Petrotrin’s closure four years ago. The proposal could help Heritage boost oil production by 5,000 barrels of oil per day (bopd) in the short term and by 10,000 bopd in the longer term.

He reiterated OWTU claims that certain people benefitted financially from Petrotrin’s closure.

Imbert said, “Gasoline is purchased by countries at an ex-refinery price based on the cost of acquiring and processing oil.”

It costs Government $ 7 billion annually and is sold to drivers for $5 billion.

“The $2 billion difference is paid by taxpayers which could be used for many other purposes.”

On April 8 in the House, Imbert rejected claims that Petrotrin’s closure resulted in the population having to pay higher fuel prices.

In 2014, when the refinery was in full operation, the fuel subsidy liability to the government in that year was $7 billion.

“That is what it cost taxpayers of this country to maintain fuel prices at subsidised levels in 2014.”

Before its closure four years ago,the refinery’s daily throughput of oil was approximately 140,000 bpd.

“This meant that every day that the refinery operated, it was required to purchase 100,000 barrels of imported oil at world market prices, which at today’s prices would require foreign exchange of US$10 million per day to purchase oil.”

A team appointed in 2017 to review Petrotrin’s operations and make recommendations for its restructuring, estimated that between 2012 and 2016, the refinery lost up to US$15 on each barrel of oil that it processed, with consistently negative refinery margins.

“Using an average loss of US$8 per barrel of oil processed during this period, this meant that the refinery lost over U$1 million per day in its operations.”

If the refinery was still operating “not only would there be a huge billion-dollar fuel subsidy liability to contend with, but there would be leakage of US$1 million in foreign exchange per day and a requirement for Petrotrin to find US$10 million a day to purchase oil. This is what we evaded by the closure of the refining business through the restructuring of Petrotrin. These are indisputable facts.”

 

Ramnarine:  “fuel prices not comparable”

It was not enough to compare fuel prices in Trinidad and Tobago with those in other countries, to justify increases on April 19, former Energy Minister Kevin Ramnarine said.

Finance Minister Colm Imbert announced the fuel price increases on April 8.
Current prices per litre for premium gasoline, super gasoline and diesel are $5.75, $4.97 and $3.41 respectively. On April 19, the price of premium gasoline and super gasoline will be adjusted by $1 per litre to $6.75 and $5.97 respectively, while the price of diesel will be adjusted by $.50 cents to $3.91 per litre. The price of kerosene will be adjusted from $1.50 to $3.50 per litre. This is the fourth fuel price adjustment implemented since the PNM returned to office in September 2015.

The price of liquefied petroleum gas (LPG) remains fixed at $21 for a 20lb cylinder of cooking gas for domestic customers. The Energy Ministry will determine an appropriate LPG price for commercial customers.

Referring to Imbert’s statements then and his tweets this week, Ramnarine said, “We cannot simply compare fuel prices from one country to another. You have to take into consideration other factors such as minimum wage and purchasing power.”

Ramnarine was hopeful that measures previously announced in the last budget regarding monitoring of fuel prices would be implemented at some stage.

“Ultimately, we need to move to a variable price at the pump with an upper limit cap.”

In his 2022 budget presentation in the House last October, Imbert said the Energy Ministry would post the market-based wholesale prices of premium gasoline, super gasoline and diesel on the first day of each month.

Government would set a “retail margin ceiling for each petroleum product to minimise price fluctuations and protect the end consumers of premium gasoline, super gasoline and diesel.”

Former minister in the ministry of finance Vasant Bharath described the fuel price increases as heartless.

“These are perilous economic times for most families, having endured seven years of an economy in a negative-growth tailspin, compounded by the battering of covid.”

The Government did not understand that “any increase in taxes, as this is, will result in increased prices of food, medicines, clothes, taxi fares and all goods that need to be transported.”

Liquefied Petroleum Gas (LPG)

Cooking gas supply was stalled as Beetham landfill fumes affect NP plant.

Truck drivers waited outside locked gates of the National Petroleum (NP) distribution centre, Port of Spain for days to refill thousands of cooking gas tanks to supply to customers. Staff were sent home because of toxic fumes from the Beetham landfill since it caught fire and spread thick, black smoke throughout the city.

“It’s a sad thing. Trucks have been backed up to the highway waiting for days.”

One driver said while he understands workers should not work under hazardous conditions, workers should return to the plant now that the smoke has cleared.

“The plant locked up since 8 am. We are sitting here waiting for them. It’s been excuse on top of excuse and we’re waiting. When it has smoke, we understand. We can’t go against them, and we must give them the benefit of the doubt.”

A small fire burned at the landfill but the smoke was not affecting the NP distribution centre as much as in previous days. Drivers were told evening shift staff would come out at 1 pm. However, the plant remained closed.

“If we don’t sell gas, we don’t get paid. Customers are threatening to buy from other producers like Ramco. We can’t afford to lose customers.”

NP’s acting CEO John Gormandy said consumers should not worry about a shortage of cooking gas, especially with Easter weekend approaching.

“We have measures in place. The public has absolutely no need to panic. The situation is beyond our control, and we sincerely apologise. It is an unfortunate situation. It will be a minimal inconvenience for some but we are working arduously to rectify it.”

The company has been keeping distributors updated. NP has also been constantly monitoring the air quality which registered as hazardous on some days and moderately hazardous on others.

“Once the air quality improves, we will reopen.”

NP has been working with the Pointe-a-Pierre Paria Fuel Trading Company to meet supply demands and shifts have been increased to provide fuel and serve north and south service stations.

“The challenge is that fires keep resurfacing. As recently as this morning there were two more fires. We have been working with SWMCOL (the Solid Waste Management Company Ltd) and fire services for a speedy response to the situation.”

The Environmental Management Authority (EMA) released data on its social media platforms which indicated the air quality in Port of Spain was still unhealthy. There was an increasing likelihood of respiratory symptoms in sensitive groups including older adults, children and people with respiratory ailments and allergies. Aggravation of heart or lung disease and premature mortality in people with heart or lung disease was also a risk.

NP has backup systems in place, including partnering with Ramco to distribute its products. One distributor sells 1,800 20lb cylinders and 162 100lb cylinders in a day and was told that Ramco did not have enough tanks to meet its supply needs.

Another service station owner had not received tanks for days and is hoping the situation will be rectified. President of the Petroleum Dealers Association Robindranath Naraynsingh said he was aware of the situation and smaller community gas stations are most affected. One of his gas stations in St Helena/Piarco has been out of stock for the past few days

RFHL

Apr 11 2022

Republic Financial Holdings Ltd (RFHL) amended its organisational structure to include a new Office of Sustainability to demonstrate its intent to integrate sustainability into its strategic and operational processes.

The Office of Sustainability will be responsible for developing and implementing strategies that will steer group operations to incorporate ESG (environmental, social and governance) concerns.

ESG factors are emerging as global benchmarks for organisational accountability, profitability, efficiency and longevity. The unit’s responsibilities will include developing and mainstreaming of an ESG strategy for RFHL, co-ordinating the United Nations Environment Programme Finance Initiative (UNEP FI) and reporting on the group’s sustainability journey locally, regionally and internationally.

Leading this effort is the Group Sustainability officer Tisha Marajh who brings a wealth of knowledge and experience to the position and worked as a sustainability/communications professional and environmental consultant on a range of local and international projects for over two decades.  She holds Master and Bachelor Degrees from York and Carleton Universities in Canada, specialising in sustainability, environmental management and international development.

Her appointment puts action to the group’s 2020 commitment to align with the Paris Agreement, the UNEP FI and the Sustainable Development Goals (SDGs).

“As the only Caribbean domiciled financial signatory to the UNEP FI Principles for Responsible Banking and a founding member of the UN-convened Net Zero Banking Alliance, the group has also set an ambitious US$200 million climate finance goal to help mitigate against climate change and build resilient infrastructure across the 14 territories in which it operates.”

 

 

US $100m for local businesses

12 April

Trade and Industry Minister Paula Gopee-Scoon announced that Government increased availability of foreign exchange for the business sector. At the opening of Massy Stores Brentwood, Chaguanas, she said the retail sector plays an important part in revitalising the economy and the supply of forex was increased through EximBank.

“This week, Cabinet approved an increase by US $100 million to the facility for importers and manufacturers for the purchase of basic foods, pharmaceuticals and other related essential items in response to the covid19 pandemic. The new total aggregate amount approved since inception for this purpose is now US $530 million.

“Additionally, an increase of US $100 million to the facility to facilitate allocation to local manufacturing and exporting companies was approved. The new total aggregate amount approved since inception is now US $450 million.”

The retail sector’s input to the economy was critical, as 2019 Central Statistical Office data showed it had about 8,656 businesses and contributed nearly 13 per cent or $20.3 billion annually to the country’s Gross Domestic Product (GDP).

Amid rising food prices, Government continues to monitor the external factors which were beyond its control.

“We have been working proactively to monitor and address rising food prices to bring some relief. One such measure is the zero-rating of basic food items. VAT was removed on an expanded list of food items as announced in the fiscal 2022 national budget presentation.

“Other measures include the suspension of the common external tariff on basic food items, the rollout of an agriculture stimulus package, strengthening linkages between industry and agriculture to promote greater synergies between industry and the domestic agriculture sector, and the implementation of a food price monitoring mechanism by the Consumer Affairs Division.”

It was unfortunate there is still a high reliance on imported goods, and she urged consumption of local foods. Government continued to facilitate economic recovery through targeted investments in areas such as manufacturing, business process outsourcing and agro-processing, distribution, food and beverage, information and communications technology, agriculture and hotel and tourism.

TTEC workers

Delivering a letter to Public Utilities Minister Marvin Gonzales, OWTU leader Ancel Roget urged him to confirm the employment status of over 200 temporary workers at the TT Electricity Commission (T&TEC). Some have been at the commission for over ten years.

“Why not confirm the temporary workers, many of whom are working in vacant positions? If you keep hiring contract workers, you will make the permanent work force smaller and make smaller, their ability to perform excellent work. We call on the minister and T&TEC management to confirm them.”

The letter sought permanent jobs for temporary workers and also requested a meeting with the minister to discuss outstanding issues so they could move forward amicably. T&TEC was a utility that provided a steady and reliable service to its customers. Nothing was done to address issues raised in a letter delivered in 2020 to the ministry

“Some of these issues include the pension plan, issues related to covid19, the mandatory way management is treating with temporary and permanent workers, the deterioration of the relationship between management and the recognised majority union, the non-payment of bills by government and its impact on operations, and the unnecessary expansion of contract labour.”

 

 

TTEC theft

A thief was electrocuted while trying to steal cables from overhead lines in Barrackpore. Police said that at around 2 am, a guard on duty at a company in Rochard Douglas Road heard an explosion. When he checked, he saw sparks on the overhead lines and a man hanging across the high-tension cables and wires. The estate constable called the police and officers found two hacksaw blades, a hat and a backpack at the bottom of the pole.

TTEC officials said it is believed the man was electrocuted while trying to steal the cables. The incident caused a power outage which was restored.

(There are 54,888 copper scrap suppliers, mainly in Asia. The top supplying country is PRC. It is believed that scrap copper is sold to PRC companies.)

Digicel

The telecommunications landscape of T&T changed significantly when Digicel officially launched operations in April 2006. Digicel’s arrival signalled the end of the monopoly then held by bmobile but even prior to launch, the impact was felt as the prices of mobile phones plummeted.

Mobile phones became affordable for all, paving the way for the current situation where there are 1.89 million cellphones in operation, more than 1.399 million residents.

That impact caught the attention of Digicel’s incumbent chief executive officer, Abraham Smith, back then as he searched for cellular phone companies operating on the island for his wife.

“I remember looking at the news one day, my wife had said, ‘Aren’t there cell phone companies on islands?’ And so I went and googled, I don’t even know if it was Google might have been AltaVista or Yahoo or something. And just said like, cellphone companies on islands and I saw Digicel and I saw all these red banners and red T-shirts, red umbrellas and really read about how they were coming in and bringing prices down, bringing affordable devices, taking mobile coverage to places that hadn’t had it before,” he said as he reflected on the company’s 16th anniversary in T&T.

Smith was intrigued then but now, as part of the operation, he’s hoping to push another significant transformation.

“It’s been really exciting for me being here three years now. Really seeing that ethos every day and I think that that ethos is understanding customers, finding out what they need, and delivering it for him. And so I think that’s our legacy.”

The recent push towards digitalisation, which has been emphasised by the Government has been extremely exciting to the company, particularly as the company realised the need to change its focus.

“If you look 16 years ago, the need was getting network coverage, mobile network coverage to folks mostly voice and getting prices to be more affordable and for the masses,” he said, “Since that time, we now cover almost 100 per cent of the population with voice coverage and a significant part of the population 95 per cent plus with LTE coverage. So people have voice and data almost everywhere that they need it. “

Digicel began its own transformation to a digital operator in 2020, as the company recognised the change in demand from customers.

“Now it’s about digital services. And so that’s what we started back in 2020, it was our digital operator strategy. Where we started delivering on the digital needs that folks have, whether that’s listening to music, whether that’s streaming video, whether that’s chat applications, and we looked at how to deliver on those needs,” he said, “And I’m really heartened by what the government has done by focusing on digital transformation, even at a ministerial level. And I think that’s what I’m really excited about are some of the larger kind of ecosystem things that we can do. To support the next phase of digital evolution in T&T.”

The pandemic accelerated the progression to digitalisation and created major challenges for his company.

Key revenue earners for the telecommunications operator were decimated by the change in demand prompted by the pandemic, while supply chain obstacles have created logistical headaches as the company has planned upgrades and adjustments to support its digital pivot.

“The changes that happened during the pandemic are actually the most significant thing that’s happened over the past three years. And the change that we saw there was that the demand for home internet actually far outpaced the demand for mobile internet. This was so even in the business segment. Instead of a lot of capacity going to one location, people needed a little capacity going to multiple different locations,” he said. “Now at this point, you have around 90 per cent of folks have fixed internet in between 85 and 90 per cent of folks have fixed internet at home and the use mobile internet every day. You actually saw that fall off during the pandemic. You see that coming back a little bit now is things open up. “

The drop in mobile data subscriptions as well as the increased fixed-line usage proved problematic. It was identified as one of the main reasons competitor TSTT announced restructuring plans in January amid significant revenue drops. Smith similarly said the shift was costly for his company.

“The biggest change was that fixed internet piece and on the fixed internet what we’ve seen is a dramatic explosion of the video-capable application. So Teams and Zoom is now consuming huge bandwidth. That’s actually driving our costs. You know, folks think, well, everyone needs internet. So that’s great for you. It is good. We want to serve folks, but it’s actually driving costs up significantly on international bandwidth and equipment cost with the supply chain challenges that exist,” he said, adding the increased usage of these high video-intensive applications greatly affected their output to their wide customer base.  “It’s a real challenge to make sure we maintain the speeds that folks need for those applications at home.”

Citizens were also pushing the digital transformation as many customers were eager to adapt to new tech trends and willing to use new apps being pushed globally. With this in mind, Smith was pleased with the success of Digicel’s applications since the company switched its focus.

“Here folks are very much on the forefront and they’re pushing us to deliver more and more. And so we see that not only in the subscriptions to say Spotify and Netflix in those types of products, but also in those products that we brought. So we’ve seen D music, I would say that the subscription levels there over the past two years have just over doubled. I’m especially proud of Go Loud, which is a podcast and radio application that has seen infinite growth of usage on the radio and podcasting apps.,”

T&T was also full of creative potential to further drive the digital revolution.

“I met with entrepreneurs and developers over the past two years here in Trinidad. There’s a tonne of creativity. So instead of us as a country consuming international content and international digital products, I’m excited to look at how we create content and digital products that we export to the world.
“I’m excited about the next 16 years. I call it ecosystem changes in digital infrastructure. Changes we’re going to make as a country, with government, with business, with us all working together to look at digital identity; some smart city initiatives and mobile payments, those kinds of infrastructural ecosystem changes. I think you’re going to see a lot of that and I think you will see us leading out on those things.”

 

Siparia Regional Corporation

Council members of the UNC-controlled Siparia Regional Corporation accused the Government of neglect, saying the corporation lacks funding to serve burgesses properly.

Acting chairman Chanardaye Ramadharsingh and councillor Doodnath Mayrhoo pleaded with the authorities to fix outstanding problems before changing the corporation to borough status.

The corporation sent a proposal to the Rural Development and Local Government Ministry on March 22, requesting $7 million in additional funding. The proposal is to be submitted for consideration in Mid-Year Review in Parliament.

“That amount is the shortfall we have with respect to allocation. This is required to keep us going until the end of the financial year,” Mayrhoo said.

“It has no point making Siparia a borough in the same condition it is now – that would be a cosmetic change. It will cost a large sum of money to change all our signs and logos on vehicles and our buildings and so on.”

He urged the line minister Faris Al-Rawi to meet the council.

“This corporation has nine electoral districts, and the allocation for this financial year was a measly $800,000. This means the nine councillors and the chairman each get $80,000. The local roads are in poor condition because we do not have the resources to maintain them. Several landslips need attention immediately. Four of six backhoes are not working. The corporation is being crippled by the central government.”

Of the corporation’s 68 vehicles, 29 are not working properly. Last month the Prime Minister announced that the Siparia and Diego Martin corporations are to become boroughs. The Siparia corporation serves over 80,000 people from Syne Village to Mosquito Creek to Icacos.

“Right now, we are running on credit. Suppliers are refusing to give us any line of credit again because we have maxed out our credit,” Mayrhoo said.

He repeatedly criticised the Government, accusing officials of “playing political games with the burgesses.”

The corporation is also short-staffed.

“If there is any attempt to displace any worker in this corporation, we stand ready to take whatever necessary action to ensure that every worker’s employment is safe.”

(Forest Reserve is a world-class oilfield in Siparia and should receive oil revenues to maintain local services)

 

 

Petrotrin pension plan

Petrotrin pensioners petitioned the Prime Minister, claiming the terms and conditions of their medical and pension plan are not being honoured. Members of the Oil Workers Trade Union (OWTU), led by President Ancel Roget, gathered in front of Whitehall, Queens’ Park Savannah on Friday for the second time after a letter was delivered to the Office of the Prime Minister on March 25.

The letter depicted the pain and anguish of the retirees. “We said (in the letter) that the situation was urgent because the medical plan which they benefitted from was not something given to them, but something negotiated as a term and condition of their employment.”

When Petrotrin closed in 2018, pensioners lost the medical plan that was supposed to be guaranteed for life. Those who suffered illnesses as a result of their jobs were unable to access medical care.

The union has not received any feedback from the Prime Minister.

“You are afforded the best medical care as Prime Minister. That’s ok because you perform a function and as a union, we recognise you are entitled to compensation but for heaven’s sake, those who contributed and who we negotiated for, they also deserve the terms and conditions guaranteed in their pension.”

One said he was disappointed in the Prime Minister’s silence since the letter had been delivered.

“Not even an acknowledgement and we consider that an insult to the OWTU, and a disrespect to the retirees who worked over the years in Texaco, Trinco and Petrotrin.”

He and his wife depend on the medical provisions negotiated by the union for their survival.

“Since Petrotrin closed down, I have lost quite a few comrades who met their demise because they were unable to access the medical attention they needed.”

Premium medical plans cost from $1,200 to $1,500 which they cannot afford. The pension plan is scraping the bottom of the barrel. The letter said the plan was $4.6 billion in deficit and the government, after Petrotrin’s closure, committed to funding the existing deficit of the plan to ensure the preservation of all the benefits for the plan members.

 

Gas price impact on fish prices, construction costs, SMEs

Higher fish prices, escalating construction costs and lower returns for gas stations are among the forecast effects of fuel price increases which take effect on April 19.

In Parliament, Finance Minister Colm Imbert announced an increase in fuel prices. The price of premium gasoline and super gasoline will be adjusted by $1 per litre to $6.75 and $5.97, respectively. The price of diesel will be increased by 50 cents to $3.91 per litre and the price of kerosene will be increased by $2 from $1.50 to $3.50 per litre.

Fishermen say higher fish prices may become the norm if the price of diesel increases any further. One who has been fishing for 30 years said he and the other fishermen at the Cocorite Fishing Depot did not catch enough fish to cover the cost of fuel so the 50 cents increase was significant.

“We didn’t expect it but we have to take it because we still have a family to mind. It’s like you expect a certain amount in your salary and at the end of the month they just decide to cut it.”

TT waters did not have the volume of fish as in previous years and there were more boats so individual fishermen were catching fewer fish. They burned a lot of fuel hunting for live bait and then for the fish. They had to change their engine oil and filters every 300 hours which cost around $1,500.

Since it was Easter and fish prices were high, around $50 per pound for king fish and $45 for carite, the increase would not affect them too badly. However, once Easter has passed and fish prices decrease, they would not be able to make a decent living.

“When gas goes up on April 19, people should expect fish prices to go up too.”

One, a fisherman for 24 years, said he and others at the Carenage Fishing Centre spent $1,000 or more in gas during a fishing trip as they usually have to search for their catch.

“Gas (diesel) keeps going up but fish prices fluctuate. When Easter finishes and the price drops, fishermen will be working at a loss. I mean, everyone kind of expected the increase (in fuel prices) but really, if it raises again, a lot of fishermen won’t survive.”

It would be difficult for fishermen to increase their prices, not only because fish prices change with supply and demand, but because fish were perishable. As a result, fishermen had to sell their catch to vendors in a timely manner.

Unipet said increased prices without margin adjustments will affect the viability of its gas stations. Unipet waited to see if the increases will impact its operations. “That is the detail that will determine the future survival of all our dealers and ensure that our gas stations remain open for business.”

While hydrocarbons will continue to be the primary transportation fuel in the immediate future, Unipet has begun the transition towards renewable green energy including the use of solar power at its Brentwood station and its convenient electric vehicle charging units.

“Our greatest hope is that the government has considered our recommendations for the implementation of a different pricing model which will ensure that the market operates in the best interest of everyone, particularly our customers and consumers.”

The president of the Inter-Isle Truckers and Traders Association said despite being aware of the global situation, he believed it was unreasonable for the government to increase fuel prices.

“A lot of transport vehicles are older and not getting the type of mileage they did before. Already people are using kerosene with their diesel to stretch the dollar.”

Once fuel prices increased, the cost of almost everything else, including transportation and the movement of goods, would increase as well, and “everybody in the country will feel the squeeze.”

Contractors’ Association president Glenn Mahabirsingh said his members also anticipated some adjustments in fuel prices and expected contractors to recalculate costs.

Since the pandemic there had been a series of increases in all materials as well as shipping costs. Since the war in Europe and the resulting rises in oil prices, they saw increases in the price of bitumen. Now, they are seeing an increase in diesel prices when diesel is used in the production and transport of materials.

Since input costing has been so unpredictable over the past few years, he urged the government to reinstate subclause 13.8 in state contracts which would allow contractors to adjust their pricing according to changes in costs.

“All these increases have been difficult for contractors. In this way, business would be fair to both the contractors and the clients and contractors would not end up in an out-of-pocket position.”

Sangre Grande Chamber of Commerce acting president, Indra Sinanan Ojah-Maharaj, expressed her concern for small and medium-sized enterprises (SMEs). She urged government to discuss fiscal stimulus considerations and engage in discussions with the business sector to buffer and mitigate the impact of the rise in gas prices.

Statistics

Minister in the Ministry of Finance Brian Manning recently cited a report by the Central Statistical Office (CSO) which estimated GDP growth of $5.5 billion last year as a sign the Government maintained the economy on a stable footing. Oropouche West MP Davendranath Tancoo countered the growth evident was not truly a sign of any significant strategy but rather merely a record of an economy on the rebound after prolonged covid19 restrictions.

Mr Manning is correct to suggest the increased activity evident bodes well for the future and reflects positively on the Government. That activity has been able to resume so quickly is a sign of a strong pre-existing economic structure.

According to the International Monetary Fund (IMF), the growth pattern is expected to continue this year. The IMF in March projected 5.5 per cent growth in real GDP – stronger than initially projected – based on rising oil and gas prices. It also praised the Government’s “decisive emergency response.”

“Overall, the financial sector remains well structured and stable,” the IMF concluded in its Article IV consultation.

It is one thing to see the glass half full and another to claim the glass is actually full. Even the IMF observed that if growth projections do materialise, this would only partially offset “the combined economic contraction that occurred in 2020-21.” This suggests that the economy is simply playing a game of catch-up, not really thriving.

Moreover, the IMF also alluded to the challenge of the lack of timely data, saying it looked forward to the implementation of pending reform of the CSO. Mr Tancoo is correct to question the usefulness of statistics that are very often out of date. It is also true that these statistics are not good at capturing realities on the ground, such as the hundreds of small and medium businesses that had to close their doors permanently.

While Mr Manning’s colleague Trade and Industry Minister Paula Gopee-Scoon recently praised the “remarkable resilience” of companies in the manufacturing sector, the truth is there are many who feel the Government could have done much more to support businesses and the workers they employed.

The statistics also fail to capture the problems faced by entrepreneurs who operate in an environment which they do not find hospitable. The TT Manufacturers Association is just one stakeholder which has, over decades,sought a more enabling environment with greater ease of doing business.

With prices for some commodities spiralling owing to global events, distribution channels clogged and company profits consumed by the minute – how useful are boasts about the overall GDP picture, which is more reflective of oil and gas price dynamics?

The Ministry of Finance must address the country on its plans, as Cabinet mandated it to and spend more time outlining strategies for diversification.

 

‘Everything will be affected’ by fuel price increase

Rajiv Diptee, president of the Supermarket Association (SATT) said food suppliers will have to do an assessment to determine the actual impact of the fuel price increase , as announced by the Finance Minister.   He warned that realistically, the price of transport fuel, will affect everything.

“Raising the price of fuel directly affects the cost of living. Everything will be affected,” Diptee said when to comment on the fourth price adjustment to fuel since the PNM returned to power in 2015.

Suppliers will have to make an assessment before they implement the necessary adjustments.

“That pertains to marketing, operations, transport and then they will formally notify the stores of the adjustment in pricing that will come. This will differ from supplier to supplier, supermarket to supermarket.”

Diptee described the timing of the increase in fuel prices as ill-advised and insensitive.

“When you consider that the economy has just reopened fully, when you consider school is just about to start back. So we would have a population that hasn’t been able to recover their income, they are already in an impoverished state and they haven’t had that time to really catch themselves.”

The customer would now have less in their pockets to spend because the percentage they would have had, where disposable income is concerned, will shrink further due to the increase in the price of fuel, a necessary component for the movement of goods and services. Even though the cost of diesel increased by a mere $0.50 there will still be a direct and indirect impact on operational costs.

“This is so because goods have to move from the port to the stores and warehouses. However, the road conditions have not improved so this will be a continuation of inefficiencies. Somewhere along the line suppliers of goods,will be affected based on the cost of their transportation… I’m sure an exercise will be conducted by each of these companies to see how this impacts their cost of operation.”

 

PRESSURE AT PETROL PUMPS

On the day after Easter Monday, April 19 there will be an increase in fuel prices, Finance Minister Colm Imbert announced in the House of Representatives . Current prices per litre, for premium gasoline, super gasoline and diesel are $5.75, $4.97 and $3.41 respectively. This is the fourth fuel price adjustment implemented since the PNM returned to office in September 2015.

The price of premium gasoline and super gasoline will be adjusted by $1 per litre to $6.75 and $5.97, respectively, while the price of diesel will be adjusted by $.50 cents to $3.91 per litre. The price of kerosene will be adjusted from $1.50 to $3.50 per litre.

The price of liquefied petroleum gas (LPG) remains fixed at $21 for a 20lb cylinder of cooking gas for domestic customers. The Energy Ministry will examine what will be an appropriate LPG price for commercial customers.

Government has done its best to protect citizens from the full impact that increasing fuel prices would have on the cost of goods and services.

“Government is cognisant of the effect of an increase in the price of fuel on consumers, notwithstanding the fact that a fuel subsidy is a regressive measure.”

When the 2022 budget was presented in October, Government indicated liberalisation of domestic fuel prices. It was not expected that oil market prices would increase by over 60 per cent in five months. Concerns about oil prices were influenced by climatic and global economic factors which pre-dated the RF’invasion of Ukraine on February 24.

When the 2022 budget was finalised last September, oil price was just over US$70 per barrel. Two months later, it dropped to US$65 per barrel. The budget was pegged against a US$65 per barrel oil price and a US$3.75 per mmbtu natural gas price.

An adverse effect of low levels of oil production and high oil prices is an increase in the fuel subsidy, which must be paid out of tax-derived revenues. The price of motor fuels is affected by oil prices. LPG prices are affected by natural gas prices.

“At current commodity prices,.. all of these fuels are still heavily subsidised, even as we have already reduced the levels somewhat, at an earlier time.”

Highest subsidies are on LPG and kerosene and “there remains substantial subsidy on fuels used in transportation.”

In the absence of a subsidy, he said, “The retail prices of premium gasoline should vary from $6.18 per litre at an oil price of US$80 per barrel to $7.58 per litre at an oil price of US$100 per barrel.”

Unsubsidised diesel prices would vary from $5.35 per litre at an oil price of US$80 per barrel to $6.58 per litre at an oil price of US$100 per barrel.

To maintain fuel prices at current levels, Imbert said “requires a substantial amount of government subsidy.”

The money needed to subsidise the one-billion litres of fuel used annually in TT, “varies from $922m at an oil price of US$80 per barrel, to $1.94b for an oil price of US$100 per barrel.”

Government will have to pay approximately $1.69b from tax revenues to maintain the fuel subsidy. “This level of subsidy is unbudgeted and unsustainable,” he declared.

While a fuel subsidy is a regressive measure, Government was also aware of the effect increasing fuel prices would have on consumers

“Accordingly, the Government is of the view that the liability for any fuel price adjustment should be shared more or less equally. The public should be asked to pay half the cost of the increased market prices of fuel, while the Government absorbs the other half.”

The partial adjustment would be “sufficient to allow an equal distribution of the cost.”

These price adjustments will still require a government subsidy of approximately $840 million this year.

To encourage motorists to conserve fuel and alleviate the effect of increased fuel prices on citizens, Imbert said by mid-May, arrangements will be made “to allow for the waiver of taxes and customs duty on suitably sized imported hybrid motor cars, both new and used.”

These concessions will not be available for owners or importers of high-end luxury hybrid cars. Further details would be provided at a later date.

 

Ex-minister opposes fuel price rise

Fazal Karim, former Chaguanas East MP and tertiary education minister says now is the wrong time to remove the fuel subsidy. As he joined the national conversation on the government’s harsh decision to raise fuel prices from April 19, Karim said the new prices represent an increase of 17, 121 and 161 per cent for premium, super and diesel between 2015 and this year.

“It is the fifth gas spike on super gasoline and diesel in the past seven years due to the removal of the fuel subsidy by the PNM Government, and an increase in premium gasoline for the first time in ten years.”

Against the background of the pandemic, RF conflict, escalating food prices, mounting unemployment and static wages, Karim said the grim decision to increase fuel prices is ill-timed.

He was concerned that this will “heap untold hardships on citizens who are struggling to make ends meet.” Karim was also worried about increasing poverty levels and a weakening of the job market in the current scenario.

“Given the factors above, it is safe to say that the fuel subsidy is necessary over the short to medium term.”

The purpose of a fossil fuel subsidy is to reduce the cost of energy to a producer or consumer.

“In 1974, the Petroleum Production Levy and Subsidy Act was enacted in TT and a fuel subsidy was established to share petroleum revenues with citizens and protect consumers from high fuel prices. Many countries have attempted to phase out and rationalise ‘inefficient’ fossil fuel subsidies. The G20 countries continue to pump US$200-US$300 billion annually into oil and gas subsidies contrary to a commitment of subsidy reform in 2009 at the Pittsburgh Summit.”

Between fiscal 2011 and 2020, fuel in TT was subsidised to the tune of $21 billion. Karim said $19 billion came under the former UNC-led People’s Partnership (PP) coalition government while $2 billion came under the incumbent PNM administration

“The entire population benefited from the value of the fuel subsidy under the PP.” He claimed the PNM cut the fuel subsidy while wasting billions of dollars on failed plans, vanity projects and property rentals to party members. Karim disagreed with an argument for the fuel subsidy disproportionately benefits high-income groups.

“The same Government rolled back the subsidy on diesel, which increased from TT$1.50 per litre (2015) to TT$3.91 per litre (2022) making it the highest percentage spike of all three fuels.

With diesel being the fuel used most in public transportation as well as the transportation of goods and services, Karim said, “An increase in diesel is passed directly on to consumers, and hurts the poor and most vulnerable in society contrary to the Government’s rhetoric of protecting low-income groups.”

In 2017, Government removed motor vehicle taxes, VAT and duties on hybrid vehicles and by 2018 tax concessions on hybrid vehicles with engine sizes exceeding 1599cc were rescinded.

“By October 2020, all taxes were reintroduced on hybrid and CNG vehicles, and in November 2021 the Prime Minister ironically stood before world leaders at the COP26 Summit on Climate Change and stated that Government “…was implementing measures to phase in electric vehicles”. Karim claimed this showed Government has no plan for transition to low-carbon modes of transport.

On April 8, Finance Minister Colm Imbert said to encourage motorists to conserve fuel and alleviate the effect of increased fuel prices on citizens, by mid-May, arrangements will be made “to allow for the waiver of taxes and customs duty on suitably sized imported hybrid motor cars, both new and used.” These concessions will not be available for owners or importers of high-end luxury hybrid cars. Imbert added that further details would be provided at a later date. Karim described this announcement as “a ploy that will apply to a very limited range of electric vehicles.”

Imbert first announced the latest fuel price increase on April 8 in the House of Representatives. Before April 19, the prices per litre, for premium gasoline, super gasoline and diesel are $5.75, $4.97 and $3.41 respectively.

Those prices are now $6.75, $5.97 and $3.91 per litre, respectively. The price of liquefied petroleum gas (LPG) remains fixed at $21 for a 20lb cylinder of cooking gas for domestic customers. The Energy Ministry will examine what will be an appropriate LPG price for commercial customers. Cabinet made these decisions on April 7.

The Prime Minister said if the international prices of fuel decrease, the consumer will benefit at the pumps even though the government has been pushing for the liberalising of the sale of fuels on the domestic market. Imbert said Government has done its best to protect citizens from the full impact that increasing fuel prices would have on the cost of goods and services.

“Government is cognisant of the effect of an increase in the price of fuel on consumers, notwithstanding the fact that a fuel subsidy is a regressive measure.”

In October when the budget was presented it was not expected anywhere that oil prices would increase by over 60 per cent in five months. This was attributed to RF invasion of Ukraine on February 25. When the 2022 budget was finalised last September, the oil price was just over US$70 per barrel. Two months later, it dropped to US$65 per barrel. The budget was pegged against a US$65 per barrel oil price and a US$3.75 per mmbtu natural gas price. Concerns about oil prices were also influenced by climatic and global economic factors which pre-dated the RF invasion. An adverse effect of low levels of oil production and high oil prices is an increase in the fuel subsidy, which must be paid out of tax-derived revenues. The price of motor fuels is affected by oil prices. LPG prices are affected by natural gas prices.

“At current commodity prices, contrary to persistent misinformation from some quarters, all of these fuels are still heavily subsidised, even as we have already reduced the levels somewhat, at an earlier time.”

Highest subsidies are on LPG and kerosene and there remains substantial subsidy on fuels used in transportation.

In the absence of a subsidy, he said, “The retail prices of premium gasoline should vary from $6.18 per litre at an oil price of US$80 per barrel to $7.58 per litre at an oil price of US$100 per barrel.”

Unsubsidised diesel prices would vary from $5.35 per litre at an oil price of US$80 per barrel to $6.58 per litre at an oil price of US$100 per barrel. To maintain fuel prices at current levels,….

“…requires a substantial amount of government subsidy.” Imbert estimated that the money needed to subsidise the one-billion litres of fuel used annually in TT, “varies from $922m at an oil price of US$80 per barrel, to $1.94b for an oil price of US$100 per barrel.”

Government will have to pay approximately $1.69 billion from tax revenues to maintain the fuel subsidy. “This level of subsidy is unbudgeted and unsustainable,” he declared.

Imbert rejected criticisms of the fuel price increases. Increases in the price of gas are never easy to absorb, but it is important to note that the price of gas in TT is the second-lowest out of 13 Caribbean countries in 2022. Diesel in the United States is currently $9.13 per litre compared to the current $3.41 per litre local price.

Former energy minister Kevin Ramnarine said it was not good enough for Imbert to compare fuel prices in TT to those in other countries, to justify increases in fuel prices. “You have to take into consideration other factors such as minimum wage and purchasing power.” Ramnarine was hopeful that measures previously announced in the last budget regarding monitoring of fuel prices would be implemented at some stage.

“Ultimately, we need to move to a variable price at the pump with an upper limit cap.” In his 2022 budget presentation in the House last October, Imbert said the Energy Ministry would post the market-based wholesale prices of premium gasoline, super gasoline and diesel on the first day of each month. Government would set a “retail margin ceiling for each petroleum product to minimise price fluctuations and protect the end consumers of premium gasoline, super gasoline and diesel.”

Former minister in the ministry of finance Vasant Bharath described the fuel price increases as heartless. “These are perilous economic times for most families in TT having endured seven years of an economy in a negative-growth tailspin, compounded by the battering of covid.”

UWI economist Dr Vaalmiki Arjoon described the fuel price increase as premature. He agreed with Ramnarine and Bharath that there were other factors to consider before implementing higher fuel prices. Arjoon observed that while other countries have higher fuel prices , they balance the effects of those increases through the provision of better public transportation systems, health care and social services to their populations.

 

Sustainable subsidy

Apr 19 2022

Windfall revenue from petrochemicals can fund the subsidy. Revenue generated by dIvestment from non-performing state assets can sustain the subsidy which maintains economic activity.

On April 8, Finance Minister Colm Imbert told the Parliament that the government decided to increase the price of fuel (super and premium) by $1 per litre and diesel by 50 cents. Higher global prices for the commodity made it unsustainable for the government to fund the subsidy on fuel and lower than originally budgeted crude production had reduced revenue forecast.

“Any increases in revenue from petroleum as a result of higher than expected oil and gas prices, therefore, will be offset by shortfalls in oil and gas production….By contrast, the situation is not favourable on the expenditure side. One of the adverse effects of the current low levels of oil production and high oil prices is an increase in the fuel subsidy, which must be paid out of tax revenue.”

If unsubsidised, the retail prices of premium gasoline should vary from $6.18 per litre at an oil price of US$80 per barrel to $7.58 per litre at an oil price of US$100 per barrel. This has placed a burden on the Government which meant the money that must be found from general tax revenues to subsidise the one billion litres of fuel consumed annually varies from $922 million at an oil price of US$80 per barrel to $1.94 billion at an oil price of US$100 per barrel.

The rise in fuel prices predictably sparked anger from a population, bolstered by cheap fuel subsidised by petroleum taxes, betrayed lby the regime. which raised the price of fuel on three occasions while people pay more at the pump and cope with inflation without any reward for their sacrifice.

With soaring deficits and negative growth rates that preceded COVID-19, the struggling economy stokes sinking confidence in the future. Citizens fear public service is no longer a public trust, marked by high moral standards. of honesty and integrity.

While the fuel subsidy is arguably regressive public policy, benefiting higher income earners more than lower-paid people, it compensates for a mediocre public transportation system. Divestment can raise revenue for the State to invest in the infrastructure required due to the significant increase in private transport that the subsidy encourages and reduce the risk of accidents It can fund the market price for fuel and assist the vulnerable to deal with the inflationary pressure when prices rise. A reliable public transport system can allow seniors and those below the poverty line to travel free.

Energy market prices are cyclical and trigger increase in the cost of transportation, goods and services.

Failure to implement public policy is fatal.   Imbert told the Parliament: “We are phasing out the subsidised consumption of fuels, with appropriate safeguards for the vulnerable groups. We are putting in place a pricing reform agenda that would lead to enhanced energy efficiency with significant fiscal benefits. ..we have designed a credible and reliable pricing system for fuels within which the fuel market could be finally liberalised. We had made this commitment one year ago with the broad framework being:

• • • Removal of fixed retail margins for premium gasoline, super gasoline and diesel with petroleum retailers and dealers being allowed to fix their margins for these petroleum products;
  • • Keeping wholesale margins fixed by the Government for all liquid petroleum products;
  • • Applying an appropriate but reasonable tax to compensate for the fuel surplus, which is generated on the sale of gasoline, when oil prices are depressed;
  • • The Ministry of Energy and Energy Industries posting the market-based wholesale prices of premium gasoline, super gasoline and diesel on the first day of each month, except for the price of kerosene and liquefied petroleum gas (LPG) which will remain under the subsidy mechanism; and
  • • Setting a retail margin ceiling for each petroleum product to minimise price fluctuations and protect the end consumers of premium gasoline, super gasoline and diesel.”

Had government implemented the change six months ago, when it announced the liberalisation of the fuel markets ,it would have avoided the present political dilemma. In a scandalous lack of public leadership and skills of knowledge, analysis, based on data, institutional detail and experience. that allow it to overcome public challenges, Government failed to make the case for the rise in fuel prices. The logical economic argument is not good enough and it must offer real reasons why this liberalisation is in the interest of the beleaguered country.

 

WITCO

Apr 08 2022

Ingrid Lashley has been appointed the chairman of the board of directors at The West Indian Tobacco Company Ltd (Witco). with effect from April 7, 2022.

“Ms Lashley was appointed a director of the company in August 2008, the chairman of the audit committee in March 2009 and the deputy chairman of the board of directors in February 2022,” a notice to shareholders posted by the T&T Stock Exchange stated yesterday.

Lashley is a graduate of McGill University, Montreal, Canada, and holds a Master’s degree in business administration specialising in accounting and finance. She carries the professional designations of certified management accountant, certified public accountant and chartered accountant.

“Having spent several years at the helm in banking and mortgage financing, Ms Lashley serves on the board of directors of state, publicly traded and private companies in various business sectors in T&T. She also serves on the Disciplinary Committee of the Institute of Chartered Accountants of T&T,” the notice stated.

The notice was published pursuant to Section 64(1)(b) of the Securities Act (2012).

Lashley replaced Anthony E Phillip who had been at the helm for 15 years.

“At the close of the April 2022 annual meeting of shareholders, I retire from the board of directors. I wish to thank the board of directors, management, staff and you the shareholders for your confidence in my stewardship of the board over the last 15 years and wish West Indian Tobacco continued success,” Phillip announced in the chairman’s statement in the company’s annual report for 2021.

Witco’s 117th annual meeting was held virtually from the boardroom at the company’s compound in Champs Fleurs on April 7.

“Mr Phillip began his career as an Industrial Chemist at Caroni Ltd, and joined West Indian Tobacco in 1973 as a manager in production department. He was appointed production manager/director in 1984 and succeeded Mr Audley L Walker as managing director in 1998. Following his retirement in 2006, he became chairman of the board in 2007. His service to the international business environment included secondments to British American Tobacco (Kenya) in 1975 and Chairman and Managing Director British American Tobacco (Malawi) from 1994 to 1998. If there was a blueprint of how to navigate a company in the highly specialised tobacco Industry in T&T, Mr Phillip would certainly be listed as the author.”

Also retiring from the board was Ranjit Jeewan.

“Mr Jeewan was appointed a director in November 1986 and has been a member of the Board’s Audit Committee since 1990. Mr Jeewan has worked in the tobacco industry since 1968 when he joined Witco from its then firm of auditors, Fitzpatrick Graham & Company as a senior clerk in the finance department,” a notice stated.

John De Silva and Andrea Martini were elected directors of the Witco board with effect from April 7.

De Silva is currently the managing director of Lasco Distributors Ltd in Jamaica.

Martini is a consultant in business strategy, marketing and transformation who has operated globally in a number of fast moving consumer goods (FMCG) companies over the past 28 years.
He previously held the position of chief executive officer for the British American Tobacco Group’s interest in Colombia, Mexico and Brazil and was the regional marketing director for the Americas and Sub-Saharan Africa.

(In this Agriculture Centenary Year, Trinidad can overhaul and invest more in Cinderella agriculture to produce food instead of tobacco . Fruit, nuts, vegetables and corn can flourish on fertile Caroni Plain and provide material jobs. DIvestment of unethical WITCO can raise revenue to fund food crops and end imports. It will create a shareholding democracy and allow government to focus on law and order.)

 

 

President’s Medals for Subero, Beekhoo

President Paula-Mae Weekes advised parents and guardians to nurture temperate and tolerant young adults during the President’s Medal awards ceremony at President’s House, Port of Spain.

“We must attempt to produce assertive, confident students not afraid to question the status quo or speak truth to power. Should we not also be raising temperate and tolerant young persons who, when faced with disappointment, challenges or frustration, real or perceived, rather than descend to bullying, manipulation, or intimidation, rise to treat individuals and offices with due regard even as they fearlessly pursue their justifiable cause?”

Weekes advised the SEA top performers to take advantage of physical classes after almost two years of online learning.

“I hope that when you finally, in February, were able to meet your classmates and teachers in person and explore the halls of your new school, the experience lived up to or even surpassed your expectations. That socialisation and interaction with your peers is a critical part of your schooling, as it teaches you to play well with others and operate as part of a team.”

After a dispute arising out of the SEA placement, the Ministry of Education agreed that Aaron Subero and Ameerah Beekhoo would share the President’s Medal (gold). Mercedes David and Anjanee Dan were awarded the President’s Medal (silver).

On March 31, Subero, a former pupil of Maria Regina Grade School in Port of Spain, who passed for his first choice – Fatima College, received an invitation from acting chief education officer Lisa Henry-David to a ceremony to receive the President’s Medal (gold) in recognition of being the student with the highest SEA score in 2020.

On that same day, Beekhoo also received a similar invitation but was told she would receive the President’s Medal (silver) for placing “second.” It was announced in 2020 that Beekhoo was the student who topped the exam.

On request, CXC reviewed Subero’s results. The completed review showed Subero scored higher than Beekhoo. The ministry said a decision had been made in 2020 not to adjust the awards list since the top performers are usually identified based on preliminary results.

The issue resurfaced when Henry-David adjusted the list without approval. Within 48 hours, two pre-action protocol letters were sent to the ministry from attorneys representing the Beekhoo and Subero families. Soon after, a decision was made to have the children share the first place.

Weekes called on the children to “navigate the many situations that present themselves in everyday life,” even if distractions and disappointments come in the way. You having been tested by and bested the pernicious pandemic, I have every confidence that you will not be deterred from achieving your goals. Press on with confidence, optimism and revolt.”

 

 

 

SEA Scandal

Apr 08 2022

There are compelling reasons why the Secondary Entrance Assessment (SEA) exam is not the best way to evaluate a child’s readiness for secondary school, including the level of mental and emotional stress it inflicts on children in their pre-and-early teens.
However, those arguments do not apply in the current scenario, although the stress and pain were very real for two youngsters who topped the placement exam in 2020 but were subsequently blindsided by significant blunders made in delivering the awards linked to the exam.

At this stage, it would be difficult to compensate for the confusion, disappointment and embarrassment experienced by Ameerah Beekhoo, Aaron Subero and their families. This unsavoury affair has cast a pall over what should have been one of the greatest achievements of their young lives. It is also extremely unfortunate that they had to consider legal action in what could be a battle with the Ministry of Education.

Fingers have been pointed at an official of the Ministry of Education for this very avoidable blunder made in awarding the President’s Medal for 2020 to the top SEA performer. That alone might not be sufficient. There is still a need for full accountability from all those who are responsible for this SEA debacle.

This was not a complicated matter. The practice has always been that the Education Ministry uses the SEA preliminary results to determine the President’s Medal winners.

The problem arose after Aaron Subero, who initially placed second, queried his marks. Ministry officials subsequently told the principal of his school, Maria Regina Grade School, that Aaron had in fact topped the SEA and was entitled to the President’s Medal Gold, not the silver medal.

However, within five days, the Subero family’s joy and excitement turned to crushing disappointment when the decision to award him the top SEA award was reversed.
It was also a bitter experience for Ameerah Beekhoo, the rightful recipient of the award based on the ministry’s policy of using preliminary and not queried results. The former San Fernando TML Primary School pupil was celebrated as the top SEA student at a function at the ministry’s headquarters only to find out now that she would receive the President’s Medal (Silver) rather than the gold.

Belated attempts at damage control failed. Whatever little consolation there is to be gained by awarding the President’s Medal (Gold) to both students, as suggested by their parents, will not erase this unpleasant experience for them and their families. This is all because of the incompetence and unprofessionalism with which this situation was handled by the ministry.

It is also disappointing that in the future there will not be an award to celebrate the academic excellence of top SEA students.

Topping a field of approximately 20,000 candidates in an exam that requires two years of intensive, stressful preparation is no easy accomplishment. Youngsters who reach that pinnacle of success deserve to be celebrated.

Students are not to blame for this SEA mess, so it is a pity future candidates will be deprived of an award for their brilliance.

 

(This scandal mirrors similar ignominy in all Ministries, agencies and state institutions., as recorded in ECO APRIL reports. A bursary can replace medals to assist pupils with a book or a computer. Now they awarded gold medals.

To both children, blindsided by a government decision. Such casuistry is evasion to sanitise the fiasco and cast a long shadow over Honors, a tribute to work. Citizens may reject flawed medals tainted by corrupt officials.. Like Pontius Pilate, President Paula did not check if the winners were correct and should review academic awards based on examinations in a multinational society rife with envy.. Even the pagan Roman governor spoke the truth, finding no grounds to execute the Messiah but was swayed by the public..)