Economist Alfonso Abreu Collado says that the government’s finances are hurting as it is now receiving much less for the petroleum tax due to the increase in petroleum prices on world markets. He said there were times when the differential between cost and consumer prices of fuel generated 19% of the government revenues. With the increase in the cost of fuel, the government is only deriving 10% of its income from the fuel tax. The economist told the El Siglo newspaper that the nation’s fuel bill could increase from US$760 million in 1999 to US$1,500 million in 2000 if the present fuel prices continue. He said that the ideal situation would be to pass the increase on to consumers, but because the presidential election is only three months away, this is not considered an option by the government.
