Venezula Reduces Oil Subsidy to PetroCaribe Beneficiaries by 50% – Report


Venezuela’s oil subsidy to Jamaica and the other 16 beneficiary members under the PetroCaribe agreement, has reportedly been reduced by 50-percent.

Various international news outlets, including the Wall Street Journal and the Miami Herald have cited a report from the UK Investment Bank, Barclays, which says Venezuela cut its shipments of crude oil to Petrocaribe members to 2-hundred-thousand barrels per day, down from the 4-hundred-thousand barrels shipped daily from 2012.

But General Manager of the state owned oil refinery Petrojam, Winston Watson, says there’s no indication of a cut in Jamaica’s subsidy.

He says Jamaica continues to receive its daily quota of 23-and-a-half-thousand barrels of oil from Venezuela under the PetroCaribe deal.

Winston Watson, General Manager at Petrojam.

The Venezuelan economy has been experiencing economic turmoil over the past few years, a situation exacerbated by the recent plunge in world oil prices.

The Latin American country relies on oil for 96-percent of its foreign currency earnings.