St. Lucia’s Prime Minister Philip J. Pierre announced Monday that the price of gas and diesel at the local pumps would now cost $16.75, an increase by 75 cents.
For weeks the Pierre administration had been speaking on the possibility of an increase in fuel if the conflict in eastern part of the world did not meet urgent resolution.
The prices of LPG, which are reportedly heavily subsided by the government, have remained unchanged.
Prime Minister Pierre stated that the increases locally was as a direct result of the increase in the price of crude oil on the global market to US$100.72, a 5.5% climb.
The prime minister reminded that while LPG prices remained the same it is heavily subsidized by the consolidated fund. “The retail price of Kerosene will be $10.41 and the retail price of both the 20lb and 22lb cylinders of LPG will remain unchanged at $34 for the 20lb and $38 for the 22lb. The subsidies on these two LPG products will be $35.46 on the 20lb cylinder and $38.41 on the 22lb cylinder. So that means if the government did not subsidize LPG gas the price of a 20lb cylinder would be $69.46.” He went on to reveal that the subsidy on the 100lb cylinder was now at $58.32.
The most alarming figures indicated that the government was experiencing a negative excise tax environment, paying fuel dealers 86 cents per gallon of gas and $1.21 for every gallon of diesel sold. “The subsidy for the three weeks is expected to be $1.2 million on these two products only. This is $7.2 million below the budgeted levels for the period 2026/2027.”
For this period, the prime minister stated that the budgeted $23 million in revenue is expected to significantly decrease to a projected $10 million. He was steadfast nonetheless that the removal of VAT on building material would continue and promises made at this year’s budget presentation would be met.
The closure of the Strait of Hormuz by Iran, coupled with continuous strikes by Israel and the United States on Iran and the failure to reach a peaceful resolution, is expected to prolong the current situation concerning global fuel prices.