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Argus | Curacao imposes fuel taxes ahead of refinery deal

HomeMediaArgus | Curacao imposes fuel taxes ahead of refinery deal

By Patricia Garip | Argus Media

The government of Curacao is hoping to sign a final refinery operating deal with German refiner and commodities trader Klesch in April, replacing longtime Venezuelan operator PdV that left when its lease expired at the end of 2019 | Persbureau Curacao

Dutch-controlled Curacao has imposed a series of fuel taxes to help defray the cost of imports ahead of a new lease agreement for its refinery.

The government of Curacao is hoping to sign a final refinery operating deal with German refiner and commodities trader Klesch in April, replacing longtime Venezuelan operator PdV that left when its lease expired at the end of 2019.

The 335,000 b/d Isla refinery is currently idle. Until the plant returns to service, local distributor Curoil is importing products for the small domestic market.

Starting in March, Curacao drivers will pay the equivalent of $0.013 per liter on gasoline and diesel. Other taxes include $0.28 on 20-liter LPG canisters, and $1.37 for 100 liters. For marine fuels, the tax is $12.85/m³.

The new levies will remain in effect until 31 March, after which they will be subject to adjustment to help cover operating costs. The government says it has spread the taxes over a four-year period to lessen the burden on consumers, but if oil prices remain low, the taxes could be phased out sooner.

Klesch has not commented on the refinery negotiations with Curacao. The island used to be a key part of PdV’s Dutch Caribbean logistical network, before the Venezuelan firm’s operations and finances sharply deteriorated in recent years.

Bron: Argus Media

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