Don’t pass gas price hike to consumers

2026-01-26 - 00:02

PETER CHRISTOPHER Senior Multimedia Reporter peter.christopher@guardian.co.tt The manufacturing sector must absorb higher production costs resulting from the planned increase in natural gas prices for Light Industrial Consumers (LIC), rather than passing them on to consumers, Finance Minister Dave Tancoo said. Tancoo acknowledged that the adjustment will raise input costs for manufacturers but maintained that natural gas prices in Trinidad and Tobago will remain lower than those paid by comparable users elsewhere in the Caribbean. “The TTMA has indicated that this will increase their costs. Realistically, if the cost of an input rises beyond a certain point, final prices will rise,” Tancoo said. “However, these entities have been receiving natural gas at a substantially lower price than industrial users.” He said the Government’s policy is aimed at reducing subsidies and moving natural gas pricing closer to production costs. “What we are doing is correcting an unrealistic price range,” Tancoo said at a United National Congress (UNC) press conference at the party’s headquarters on Mulchan Seuchan Road, Chaguanas. “The cost of extracting natural gas is higher than the subsidised price the TTMA has been receiving. Even after the increase, LIC users will still be paying less than industrial customers and less than comparable users across the Caribbean.” Asked about the potential impact on consumers, Tancoo said manufacturers must adjust their operations to prevent price increases. “That is a challenge for businesses, including TTMA members,” he said. “They must examine their efficiencies and streamline operations to ensure consumers are not adversely affected.” The minister also dismissed concerns that the increase would undermine export competitiveness, saying local manufacturers remain cost-advantaged. “I am not concerned about our competitiveness abroad,” Tancoo said. “Manufacturers understand that the National Gas Company (NGC) must generate sufficient revenue to cover its costs. Even at the revised rates, there is still a significant level of subsidy.” The Trinidad and Tobago Manufacturers’ Association (TTMA) said on Friday it had formally approached the NGC, urging the company to reconsider the increase or implement the policy change gradually to ease the impact on LIC users. In response, the NGC said the proposed price adjustment aligns with the Government’s objective of ensuring the financial sustainability and long-term viability of State enterprises.