In ten years, from March 2010 to May 2020, the state lost more than 113.5 billion gourdes

Jovenel Moise calls on anti-corruption institutions to launch an investigation

In ten years, from March 2010 to May 2020, the state lost more than 113.5 billion gourdes, or about 1.7 billion dollars, on the sale of petroleum products, said the Minister of Economy and Finance, Michel Patrick Boisvert. There were "improper earnings", "money being made outside the structure by the importing companies", denounced the minister. To shed light on the tenders made between the Haitian state and private companies over the past ten years, the President of the Republic announced Monday at a press conference at the National Palace the creation of a task force formed of '' Anti-corruption Unit (ULCC), the Central Financial Intelligence Unit (UCREF) and the General Inspectorate of Finance (IGF) who will carry out investigations.

The price structure of petroleum products in Haiti is opaque, according to the Minister of Economy and Finance. First, the government changed the price structure for petroleum products in Haiti. Before, importing companies used two indices to buy gasoline on the international market. "The companies bought oil according to the Platts index and resold it to the Haitian state according to the Caribbean Posting index. The differential between these two indices constitutes the undue profit of the companies. This differential can reach up to 40 cents per gallon, "said Michel Patrick Boisvert, before the President of the Republic clarified that we consume 43 million gallons of gasoline per month in Haiti. The Minister of Economy and Finance also acknowledged the carelessness of the state in this direction, which did not seek to know the price of the Platts index.

The minister noted that the drop in petroleum product prices during the coronavirus pandemic only affected the Platts index, while the Caribbean Posting index only increased. "Now," he said with satisfaction, "the Haitian state only adopts the Platts index. "

In the new price structure for petroleum products, on each gallon of gasoline sold, companies receive a profit of 64 gourdes, the distributor or the owner of the petrol pump makes a profit of around 30 gourdes, the State loses 75.84 gourdes and the consumer buys the gallon at 224 gourdes, according to figures provided by Michel Patrick Boisvert. "To keep the price of gasoline at 224 gourdes at the pump, the state is forced to give up 75.84 gourdes," he said. And the president stressed that this money should be used for the construction of roads, schools, hospitals ...

To keep kerosene at 173 gourdes at the pump, the state loses 43.22 gourdes on each gallon. The state also lost 39.74 gourdes per gallon to keep the price of diesel at 179 gourdes on the local market.

In ten years, from March 2010 to May 2020, the state has lost more than 113.5 billion gourdes, or about 1.7 billion dollars, on petroleum products, said Minister Boisvert, stressing that tax losses represent about 83 billion gourdes and the rest constitutes the state subsidy.

According to the great financier of the Republic, in the new structure of the prices of the gasoline, the State blocked certain incomes of money of the oil companies and suddenly assumes certain responsibilities like the storage and the transport inside the country.

Boisvert said that with the new price structure for petroleum products, the state will lose revenue, but will not have to finance the subsidy. But, he said, if gasoline prices go up on the international market, the government will have no choice but to resort to public funding.

The minister noted that during the drop in international gasoline prices caused by the coronavirus around the world, the state still continued to subsidize oil prices on the local market. Michel Patrick Boisvert however acknowledged that the subsidy had been considerably reduced without giving figures on this reduction…

Currently, the country can only store gas for 21 days. President Jovenel Moïse denounced the fact that since he was at the National Palace, no investor has offered to increase the country's storage capacity for at least two months. "Importers have imported 250,000 barrels of petroleum products while we can receive 198,000 barrels. The other 52,000 barrels have so far remained on the boat, "said the president.

The head of state said importers will have to pay $ 250,000 for the additional 10 days the boat will have to spend in Haiti without being able to land the rest of the petroleum products.

After making these considerations with his Minister of Economy and Finance, the President ordered Prime Minister Joseph Jouthe to expedite.

 

Source: Lenouvelliste

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