The Minister of Finance, Economic Affairs, and Primary Sector, Mr. Geoffrey Wever, has signed a ministerial decree allowing the Government of Aruba to absorb half of the increase in fuel prices. This decision, aimed primarily at protecting the citizens’ purchasing power, is presented as concrete proof of the value of the island’s Autonomy, especially within the current debate surrounding the financial supervision law, Rijkswet HOFA.
According to calculations based on the international market, the price of gasoline should have registered a rise of 49.3 cents this month, while diesel would have increased by 83.5 cents. However, with the Government’s direct intervention, the increase for consumers will be limited to approximately 24.57 cents for gasoline and 45.20 cents for diesel.
Autonomy as a Protective Tool The central point of this announcement is that the measure could be implemented thanks to the Status Aparte and the political power Aruba holds to make its own financial decisions. If the HOFA law (Rijkswet Houdbaarheidsnormen Financiën Aruba) were in effect, the process would have been radically different.
Under HOFA, a decision of this magnitude would first have to be presented to the Dutch Parliament (Tweede Kamer) for approval. This means that the authority to decide on the economic well-being of the Aruban people would not reside exclusively with the local Council of Ministers, but with an external parliamentary body that has the power to deny the request.
As an example, the situation in Bonaire was cited, where the Netherlands denied a similar request to absorb gasoline and diesel prices despite the economic pressure residents are facing.
Financial Impact The cost of this measure for the Government treasury is estimated at 2.5 million florins per month (1.5 million for gasoline and 1 million for diesel). To finance this without affecting long-term financial stability, the Government has decided on a re-prioritization of public spending:
- Creation of a buffer: To address the international energy crisis.
- Postponing projects: Certain infrastructure projects will be postponed to the year 2027 to create the necessary financial space.
Minister Wever, in cooperation with the Central Bank of Aruba, CBS, and RDA, is monitoring the situation closely. Current analyses indicate that this increase is temporary in the international market.
This ministerial decree stands as an example of the local government’s capacity to act quickly during a crisis a faculty that could be compromised in the future if Aruba enters the HOFA structure.