Amid a deepening economic crisis, Prime Minister Ariel Henry's administration announced that it will gradually suppress fuel subsidies to increase oil prices from Friday.
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"Since 2010, the State has lost over US$1.5 billion in subsidies for oil products. This year, the situation becomes unsustainable," Economy Minister Michel Boisvert stated, stressing that law establishes that Haiti must make adjustments when oil prices rise or fall in the international market.
After consulting distributors, gas stations, and importers, authorities determined that the gasoline gallon’s price will go from US$2.0 to US$2.5, diesel oil cost will increase by US$1,84, and that of paraffin by US$1,89.
"With the elimination of subsidies, we will be able to offer more services and deploy more police officers on the streets to fight organized crime," Henry claimed.
However, economist Eddy Labossiere warned that rising fuel prices could have harsh consequences for the population, most of whom live below the poverty line.
"Authorities should preferably adopt measures to reduce corruption and smuggling so that the State find financial means to operate without having to increase fuel prices," he stated.
In 2018, the then President Jovenel Moise announced a fuel price hike that led to several days of anti-government demonstrations and the resignation of Prime Minister Jack Lafontant.