Addressing the issue, the Prime Minister said the Government has absorbed a significant loss in revenue in an effort to shield consumers from higher fuel costs, revealing that Government has forgone EC$44.9 million in revenue during the period from April to the present.
Pierre in describing the figure as “a very concerning situation” explained that the losses stem primarily from reduced fuel excise taxes and Government subsidies aimed at cushioning the impact of rising global energy prices. According to Pierre, the breakdown includes approximately EC$39.2 million in foregone excise tax on gasoline and EC$5.7 million spent to subsidise cooking gas, contributing to the overall revenue decline.
The Prime Minister stressed that the situation is being driven by developments beyond Saint Lucia’s control, pointing to instability in the global oil market, including tensions linked to the conflict involving Iran.
“We have absolutely no control over that,” Pierre said. “The situation on the oil market is not very good news for Saint Lucia.”
Despite the reduced revenue, Pierre announced that the Government will keep retail fuel prices unchanged for the next pricing period, continuing its policy of protecting consumers from sharp increases at the pump.
While acknowledging the strain this places on Government finances, the Prime Minister assured citizens that key social programmes would not be affected.
He said education support initiatives will continue into September, including assistance for students, the school bus programme, first-generation university scholarships and other education-related initiatives. Pierre also announced that a national clean-up programme, a STEP program, is expected to begin during the first week of August to provide temporary employment opportunities for unemployed Saint Lucians.
Although Government revenues have declined because of measures taken to cushion fuel costs, Pierre said his administration remains committed to balancing fiscal responsibility with support for households facing the rising cost of living.