Super subsidy bill climbs by $318m

THE Government is facing an additional $318 million subsidy bill to keep Super gasoline at its reduced price of $5.97 per litre, but will absorb the increased cost rather than pass it on to citizens, says Minister of Planning and Development Kennedy Swaratsingh.

At the Senate sitting yesterday, Swaratsingh, who is also a Minister in the Ministry of Finance, said rising international fuel prices have increased the State’s subsidy liability, but the Government has deliberately chosen to shield consumers from the additional burden.

He said further details on the sustainability of the subsidy, its effect on the country’s finances and Government’s approach going forward are expected to be addressed by the Minister of Finance in the upcoming national budget.