Trouble with Oil Prices in Haiti
Earlier this week a two-day strike in Haiti shut down the capital, Port-au-Prince and several other major cities and towns. On Feb. 9 and 10, protesters blocked off all roads leading into the capital. This is one of numerous strikes and protests that have been recurring regularly for over a month. Some of the protests have demanded fresh elections and the resignation of the current president and prime minister, while others, including this one, have focused on the high cost of fuel.
Despite a global fall in oil prices, the cost of fuel in Haiti has remained high. While gas prices in the United States have fallen to roughly $2.44 a gallon, in Haiti they have averaged $4.62 a gallon. Following recent strikes and protests, the government agreed to lower the price to $4.25 a gallon, but this lags well behind the level at which prices have fallen worldwide and protesters remain unsatisfied.
Protesters organized by government opposition leaders and public transit unions are demanding a 50 percent cut in oil prices to $2.13 a gallon. Many complain that the high cost of fuel is driving up the cost of living and is exacerbating poverty in the Western Hemisphere’s poorest country. Bus drivers complain that the high costs are preventing them from earning a living while commuters complain about the high cost of public transport. Additionally, the high cost of transporting goods has led to a rise in the prices of food and other important commodities.
The government has repeatedly claimed that it is unable to meet the protesters’ demands and cannot afford to lower the price of fuel by the amount demanded. Haiti relies heavily on Venezuela for fuel imports and currently owes the country $1.5 billion in debt as part of a preferential treatment deal. The government has been relying on oil sales to raise money to pay off this debt, and for this reason the government has said it cannot lower the price. The Prime Minister has said that “it’s not that we do not want to, it’s because we are not able to.”
But protesters, many of whom are already fed up with the current government which they view as corrupt and oppressive, remain unsatisfied with this explanation. It remains to be seen whether the two sides can reach an agreement.
– Matt Lesso
Sources: Reuters, International Business Times, Haiti Libre, BBC News, Global Research
Photo: Flickr