Caption: Chamber President Sonji Pierre-Chase, left, and Chamber CEO Vashti Guyadeen. AZP News/Alicia Chamely
Summary
- The T&T Chamber says higher natural gas prices could increase manufacturers’ production costs by US$500,000 to US$1.2 million per year.
- It warns manufacturers cannot absorb the increases, raising the risk of job losses, higher consumer prices and reduced export competitiveness.
- The Chamber says the 77% increase for light industrial consumers was implemented without sufficient consultation.
- It claims contracts were signed under “commercial duress” and include further escalations through 2027, potentially doubling prices over three years.
- The Chamber is calling for structured dialogue with the Government and NGC, transparency on the pricing formula, and a phased implementation plan.
By Alicia Chamely
ESTIMATED production costs for local manufacturers could increase by as much as US$1.2 million per annum due to higher natural gas prices, cautioned the Trinidad and Tobago Chamber of Commerce and Industry.
Calling for structured dialogue with the Government and the National Gas Company of Trinidad and Tobago (NGC), the Chamber said manufacturers cannot absorb such a drastic increase in production costs, warning it could lead to job losses and prompt some manufacturers to leave T&T.
President of the Trinidad and Tobago Chamber of Commerce and Industry, Sonji Pierre Chase, warned of the impact higher natural gas prices could have on the economy and called for collaborative dialogue with the Government and NGC at a press conference on Wednesday at the Chamber’s headquarters, Columbus Circle, Westmoorings.
Pierre-Chase said the Chamber understood the Government’s need for economic reform, including adjusting a historically subsidised economic model.
However, she said reform must be carried out transparently and guided by consultation and dialogue with stakeholders, especially where price adjustments are concerned.
She said, “The Chamber is concerned that a recent decision—particularly the 77% increase in natural gas prices to light industrial consumers—was implemented without sufficient consultation or constructive dialogue with key stakeholders.”
“Our manufacturing members reported that a revised rate was presented in a very regimented manner, without the opportunity for meaningful discussion. Contracts were signed under commercial duress and included escalations in 2025, 2026, and 2027, resulting in an overall increase of approximately 100% in natural gas prices over a three-year period,” she said.
Pierre-Chase said the sudden increase in natural gas prices created significant uncertainty for businesses, especially since the increased costs were not factored into their business plans for the year.
She said, “Our members estimate that the increased cost of production ranges from US$500,000 to US$1.2 million per annum. These are not marginal adjustments that can simply be absorbed.”
Pierre-Chase said the “likely consequences” of these increased costs include higher consumer prices, reduced export competitiveness, potential job losses, and contractions in the manufacturing sector.
She noted that business viability was being questioned and that some businesses may look to move production outside T&T.
Pierre-Chase said, “Some of our manufacturers are now actively reassessing Trinidad and Tobago as a viable market for production and are therefore exploring external regions to shift operations.”
She said any contraction or partial shutdown in the manufacturing sector would result in immediate job losses, estimating between 200 and 500.
Pierre-Chase said the Chamber was not opposed to reform, rational price adjustments, or necessary revenue-generating measures.
She said the Chamber was advocating for “structured dialogue, transparency, and predictability,” which she described as important pillars of sustainability.
Pierre-Chase said, “In that spirit, we respectfully call for structured engagement among the Government, NGC, and stakeholders; transparency regarding pricing and the pricing formula; long-term energy policies; and a phased, rules-based implementation framework rather than sudden decisions. We also call for a joint economic impact model to assess consequences before implementation, and the development of a five-to-10-year National Energy Competitiveness Framework.”
She said the Chamber believed these measures would allow “businesses to plan and maintain employment while supporting the Government’s fiscal objectives.”
