Food Prices Already Up. Now Crude Oil Shortage Threatens to Push Them Higher
Belize is investing in producing more of its own food, but keeping those industries running could become another challenge for consumers already struggling with rising prices. Producers in Spanish Lookout say uncertainty over fuel supplies for electricity generation could eventually push food prices even higher.
Norman Dyck, a member of the Spanish Lookout community and former board member of Quality Poultry Products, raised the concern Wednesday at the launch of Green Valley Oil’s cooking oil refinery.
Dyck said the community has now brought three major food-related projects into operation: UHT milk production, the Minsa Mill and the cooking oil refinery. But expanding production has also increased electricity demand, which has forced businesses to invest in solar power and additional generators.
“So with more generators, we use more crude oil, which we have not been able to get enough of lately to produce the electricity. We hope we don’t need to switch to diesel, as this would drive up food prices,” Dyck said.
“So this is a challenge that we’re currently having, that it seems like we can’t get enough crude, so this is something we’re working on right now,” he added.
Dyck said the community has been struggling to obtain enough crude to generate electricity and is working to address the shortage.
His warning comes as the Statistical Institute of Belize’s latest report showed that food prices rose 4.3% in September compared with the same month last year. Overall inflation reached 4.7%, with transportation and housing costs also contributing to the increase.
Meanwhile, Prime Minister John Briceño has confirmed that Cabinet is considering reallocating savings within the existing budget to fund programmes intended to ease the cost-of-living burden on Belzienas. However, the final decision has yet to be announced.