Enill assures oil $$ to go into Revenue Stabilisation Fund

MINISTER in the Ministry of Finance, Conrad Enill, said while government would not immediately know exactly how much money it has earned from the increased oil prices, it will put the revenues in the Revenue Stabilisation Fund (RSF) as promised. Yesterday the price per barrel of oil was listed at $47 per barrel, but by 2 pm it had dipped to $46.35 per barrel. Speaking with Newsday yesterday, Minister Enill echoed the sentiments of his colleague, Energy Minister Eric Williams, that the rise in oil prices will have mixed results.

Enill explained that while it was possible to get additional revenue, “it is dependent to a large extent on the pattern of expenditure of oil producing companies.” He said, “when there is higher revenue, that is the time the companies take greater risks and do deep water exploration.” The junior minister said government would receive additional revenues only when production and exploration is kept at the same level, which was very unlikely in times of increased revenues from oil prices. He said the second factor which must be considered to ascertain the windfall from high oil prices, was that this country not only produces and sells oil, but also  “ we buy oil to do things internally, to convert to petroleum products.”

He said when oil prices are higher, anything energy-based would cost more, including the cost of importation and therefore government has to subsidise the costs of the products by Petrotrin, so as to “stabilise inflation and transportation.” Enill said profits would be significant on a company to company basis, and the man in the street has to be aware of that. He said it must be remembered that the increased oil prices does not necessarily give the level of revenues expected, and in a lot of instances the profits are not known until the companies submit their returns. The minister however assured that the “excess” funds made from the oil prices would be placed in the RSF and government will then determine how it would be spent.