Central Products Limited (CPL), a Mennonite father and son partnership, has begun producing a type 2 diesel from a Belizean-made mini refinery for local sale at a price lower than currently available at the pumps.
Peter Teichroeb, 32, told Amandala that the company is now producing 18,000 gallons of diesel a week.
Since August 11, they have been selling to independent bus companies and farmers, in addition to supplying diesel to their construction company – Teichroeb and Sons, he informed.
Peter said he is in business with his father, Jacob Teichroeb, 56, and their business is located about a quarter mile in from the Northern Highway on the Burrell Boom Road.
According to Peter, CPL sells the diesel for $9.95 a gallon – 49 cents going to a flat excise tax, and 10% General Sales Tax.
The locally-produced diesel costs only 6% less than the diesel at the pumps of Belize City gas stations, which sell for $10.60 a gallon.
Peter Teichroeb told us that he had been working on the project for two years now, and even though they have been making diesel since February, it was only on August 1 that they were able to formally commence business, when Government established the tax regime that would apply to locally produced diesel.
They make the diesel from crude purchased from Belize Natural Energy (BNE), from the Spanish Lookout field. Through a process of separation and distillation the diesel is made, Teichroeb added.
He said that they plan to expand over the course of the year, but would have to import a mini refinery from abroad – possibly from China, the US or Russia, that would enable them to refine on a larger scale.
It was recently announced that Blue Sky Corporation, which is a partnership between BNE and an investor out of Houston, is also producing diesel for the Belizean market, and Government reports indicate that they are looking to produce gasoline and other types of fuel for sale to the local market.
On Tuesday, the Senate approved amendments to the Customs and Excise law, which include provisions for excise taxes on locally-refined fuel products.