Fuel prices on the rise, turmoil continues in Haiti

Thousands of Haitians continue to wait in line for their chance to receive fuel. Since the country’s power grid is incomplete, fuel is used to power generators for electricity and stoves for cooking.

Fuel prices have risen from about $2.33 a gallon to over $5 a gallon at the remaining petrol stations and an outstanding $6 to $12 a gallon on the black market.

Haiti is already one of the poorest countries in the world, with the average Haitian living only on about $2 a day.

The fuel shortage has worsened the daily life of the Haitian people. Homes and businesses are being robbed and looted in the dark, as Haitians only get about three hours of electricity a day from the grid. Cell reception is limited due to the nations cell provider, Digicel, having to restrict tower use because of lack of diesel to power the towers. With no gas stations, Haitians are unable to get to work and customers are not able to get to businesses. Sales are down and the country is facing an economic recession.

Haiti used to receive it’s fuel from Venezuela as part of an aid program called Petrocaribe. Haiti was able to buy discounted oil at under 50% upfront cost and the rest was payable over 25 years at a 1% interest rate.

With recent United States sanctions on Venezuela and oil production down, Venezuela can no longer provide Haiti with oil. Haiti now has to rely on the open market for oil. Through the open market Haiti has racked up over a $70 million dollar oil bill. Ships carrying oil are stopped off the coast of Haiti until this bill is paid.

Sources:

https://www.apnews.com/1f261ed6fc964244af509cf09ed0a863

https://www.miamiherald.com/news/nation-world/world/americas/haiti/article224706115.html

https://news.yahoo.com/worsening-fuel-shortage-impoverished-haiti-014305609.html