business

Fuel subsidy amount unknown

Oil companies have yet to submit claims seeking compensation for government fuel subsidies.

The government established a price cap on fuel for the very first time between Sept. 25 and Oct. 8.

However, the amount of the subsidy awarded remains unknown, as oil companies have yet to submit claims seeking reimbursement. Moreover, some within the industry are alleging that the claims process is “extremely tedious.”

The government set aside $6 million to pay for the subsidy. However, 14 days later, Energy Secretary Dani Kuzniecky informed the media that the state did not, in fact, spend this amount. Now, one month and 12 days later, the national director of Hydrocarbons, Wolfram Gonzalez, announced that the government can not estimate how much the subsidies will cost because the five fuel importing companies: Shell, Chevron-Texaco, Accel, Esso, and national oil company Petrolera Nacional, have not submitted claims. These claims are still outstanding despite a letter sent to each company asking that claims be submitted as quickly as possible so the matter can be wrapped up before the end of the year. González said the deadline for submitting claims is now Dec. 15.

That deadline, however, may be difficult for oil companies to meet, an industry source explained. That’s because the claims procedure is turning out to be cumbersome. And those who have managed to file the paperwork have encountered difficulties.

"There was a company whose claim was returned, requesting additional information,” the source said.

Today, representatives from the hydrocarbon sector will announce the new prices of fuel and related products, which, according to some authorities, are expected to drop between 12 to 15 cents across the board. These new prices will not be reflected until Saturday, since the previous price caps will remain in effect until Friday.