Amandala has received multiple queries at our news desk from members of the public wanting to know what’s happening with the oil, and how much is the Government getting from this handsomely priced resource. Sad to say, the news we’ve learned is not good.
Government’s earnings from the exportation of crude oil have again fallen well short of projections.
Revenue from petroleum production locally were said to have fallen by roughly $13 million last year, due to decline in earnings of income taxes and royalties from the industry, Government had said in March. Now, first quarter revenues are $7 million less than had been projected.
According to information Amandala received out of the Ministry of Finance this morning, the Government collected $1.4 million in taxes from petroleum produced in Belize by Belize Natural Energy, and another $1.6 million on royalty payments for January to March.
Trade bulletins published by the Statistical Institute of Belize indicate that crude petroleum exports for the same first quarter were valued at just under $16 million. The bulk of BNE’s crude is exported, with only a small percentage kept for local use.
The Government had projected that it would earn $40 million from petroleum this year, but receipts for January to March, said Finance Minister Dean Barrow, have fallen well below Government’s expectations.
He told our newspaper today that production levels and prices have fallen off, but Government has received indications that with prices going up and the slowdown of exploration programs (an expense on the BNE side), second quarter should shore up better earnings for the public purse.