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PETROTRIN IS A NET EARNER OF FOREIGN EXCHANGE

posted 16 Sep 2018, 20:08 by Gerry Kangalee   [ updated 16 Sep 2018, 20:14 ]
Foreign exchange is the most precious commodity in an open economy like Trinidad and Tobago. It is used to pay for imports inclusive of food, medicine, machinery and equipment, spare parts and consultancy service. It is critical for the settlement of international transactions inclusive of the servicing of external debt. It contributes to boosting of our foreign exchange reserves which enables us to stay out of the strangle hold of the International Monetary Fund (IMF).

Contrary to the view of some feature writers in the press, talk show hosts and university lecturers, Petrotrin is a state enterprise which is a leading contributor to foreign exchange. According to a government document published annually entitled ‘State Enterprises Investment Programme’ the foreign exchange of some state enterprises is given for the period 2010-2017.

ENTERPRISES

FOREIGN EXCHANGE in TT $Mn

 

2010

PETROTRIN

$70,701.13

 

NGC

$10,970.6

 

NEL

$0

 

NP

$251.4

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2012. PAGE 5

2011

PETROTRIN

$28,657.8

 

NGC

$1,962.5

 

NEL

$0

 

NP

$417.5

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2013. PAGE 5

2012

PETROTRIN

$29,657

 

NGC

$2,847

 

NEL

$0

 

NP

$524

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2014. PAGE 5

2013

PETROTRIN

$22,963.8

 

NGC

$2,960.9

 

NEL

$0

 

NP

$523.6

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2015. PAGE 5

2014

PETROTRIN

$19,735.2

 

NGC

$13,186.1

 

NEL

$0

 

NP

$223.1

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2016. PAGE 5

2015

PETROTRIN

$433.4

 

NGC

$562

 

NEL

$5.2

 

NP

$6.6

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2017. PAGE 5

2016

PETROTRIN

$3,542.1

 

NGC

$9,080

 

NEL

$0

 

NP

$259.3

SOURCE: STATE ENTERPRISE INVESTMENT PROGRAMME 2018. PAGE 6


It was reported for 2016 that although “The performance of Petrotrin impacted negatively on the overall outturn of the major state Enterprises . . . this entity contributed positively to GORTT’s (i.e. Government of Trinidad and Tobago) earnings of foreign exchange.”

It is abundantly clear that Petrotrin is a net earner of foreign exchange derived from its export of products refined from local plus imported crude. This information shows that Petrotrin makes its annual contribution to Trinidad and Tobago’s foreign exchange reserves – so critical to the purchase of food, medicine, machinery and equipment, spare parts, raw materials, technology products etc.

(LABOUR ADVISORY BUREAU. ECONOMIC ANALYSIS UNIT)

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