Caribbean nations want a respite from high oil prices

PetroCaribe would distribute crude and refined oil products to the region at cheaper prices than other dealers in the area.

The proposal for the new company has come from Venezuela whose Mines and Energy Minister Rafael Ramirez has been discussing it with Caricom member states at the first meeting of the region's energy ministers in Caracas.

Venezuela already has an arrangement with several Caribbean countries for preferential oil prices.

But Mr Ramirez said the dealers that distribute the fuel in the area sell at unfair prices. He said PetroCaribe will put checks in place to monitor the price at which Venezuelan products are sold.

"The sometimes offensive speculative and margin factors imposed on the products, transport and commercialisation will be eliminated," he said.

Venezuela, the world's fifth largest oil exporting country, said they would also assist Caribbean countries in their own oil enterprises.

Several weeks ago, when oil prices reached record highs, countries from the Organisation of Eastern Caribbean States (OECS) set up a task force to explore making joint oil purchases in order to save money.

The OECS proposed to buy raw crude oil from Venezuela which will be processed in Trinidad. The oil will be owned by the member states instead of companies like Shell and Texaco.

OECS countries Antigua/Barbuda, Dominica, Grenada, St Kitts/Nevis, St Lucia and St Vincent and the Grenadines were represented at the talks in Caracas which also included the Bahamas, Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago.