PARAMARIBO, Suriname –Government has announced an increase in the price of fuel products here even as the Dutch-speaking Caribbean Community (CARICOM) country battles with rising prices for basic goods and services.
The authorities said that the new prices go into effect on Thursday and will result in a liter of gasoline, though subsidies by government, increasing from SRD$22.51 to SRD$24.76 (One SRD$=US$0.04 cents).
The price for a liter of super unleaded moves from SRD$26.31 to SRD$30.41, while the price of a liter of diesel remains the same at SRD$19.87 with the government indicating that the subsidy for fuel is SRD$6.58 per liter. If the subsidy is removed the price of a liter of diesel is SRD$26.45.
The Ministry of Finance and Planning said that the international oil price has risen sharply in the past month, partly because of the ongoing war in Ukraine.
“If this price increase were to be fully passed on, prices …should be SRD$26.45 per liter for diesel and SRD$26.81 per liter for unleaded petrol, respectively,” the ministry said.
The government said that the subsidies are intended to protect citizens and businesses against the turbulence on the international oil market.
But it warned that the subsidies are likely to be phased out and replaced by a system of subject subsidies.
Suriname has been suffering from a serious financial and economic crisis for several months now. In 2020, immediately after taking office, the new government turned to the International Monetary Fund (IMF) for financial assistance.
In December 2021, a financial aid program to support the economic recovery program implemented by the Santokhi administration was approved and the IMF is making US$675 million available to Suriname for a period of three years.