ADDITIONAL FUEL PRICE DECREASES IN HAITI

UNCLAS PORT AU PRINCE 001592

SENSITIVE
SIPDIS

STATE FOR WHA/CAR
STATE PASS AID FOR LAC/CAR
TREASURY FOR ERIN NEPHEW

E.O. 12958: N/A
TAGS: EAID ETRD ECON PGOV PREL HA
SUBJECT: ADDITIONAL FUEL PRICE DECREASES IN HAITI

REF: A) PORT-AU-PRINCE 1555


1. (U) Fuel pump prices have now been reduced twice since the
reductions announced October 21 (reftel). Public transport drivers,
the Association of Fuel Distributors (ANADIPP) and a number of
senators were dissatisfied by the initial small decrease. The
Ministry of Finance and Economy announced in November 5 an
additional price decrease on 91-octane gasoline from 209 HTG (USD
5.20) to 174 HTGD (USD 4.35); on diesel from 160 HTG (USD 4.00) to
150 HTG (USD 3.75); and on kerosene from 150 HTG (USD 3.75) to 131
HTG (USD 3.28). There was no price change announced for 95-octane
gasoline (247 HTG/USD 6.18) attributed to overstock from former
shipments.


2. (U) On November 11, the Director of Fiscal Inspection at the
Ministry of Economy and Finance, Ronald Decembre, announced a
further decrease on pump prices for 95-octane gasoline and diesel
(the two most popular petroleum products used in Haiti). Effective
November 13, pump prices for 95-octane decreased from 247 HTG (USD
6.18) to 176 HTG (USD 4.40),a 71 HTG (USD 1.78) or a nearly 30
percent reduction. Pump prices for diesel decreased from 150 HTG
(USD 3.75) to 135 HTG (USD 3.38),a 10 percent reduction.


3. (U) These seem to be the fuel price drops that many Haitians had
demanded as they watched world oil prices decrease to below USD 70
per barrel. Despite domestic discontent with the initial slight
decrease in pump prices, relief at the pumps is gaining as the GoH
bases its pricing decisions on a first in, first out shipment
system. Along with his announcement of lower fuel prices, Decembre
told the public that fuel prices would go even lower if world oil
prices continue to fall.

SANDERSON