PetroCaribe not in jeopardy
President Leonel Fernandez says that the steep drop in international fuel prices will not affect the PetroCaribe agreement with Venezuela. On Friday, the price of Venezuelan oil had dropped to US$31/barrel.
Fernandez said that although Venezuelan President Hugo Chavez had expressed concern over the fall in fuel prices, there was never a point at which the agreement was in jeopardy. Fernandez added that PetroCaribe stipulates different programs of cooperation depending on the price of fuel.
Fernandez said that because of the current cost of fuel the DR must pay 70% of the petroleum bill and defer payment on the remaining 30%.
He added that if the prices jumped to US$60 the DR would have to pay 60% of the bill and defer payment on the remaining 40%, and if the barrel jumps back up to US$100 the DR would pay only 30% of the bill and defer [...]
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