CASTRIES, St Lucia – The St. Lucia government today announced the latest round of fuel prices despite an earlier warning by petroleum dealers that any new increase could lead to the closure of several gas stations on the island.
Prime Minister Stephenson King said that after careful consideration of the current situation, his administration had decided to increase the price of gasoline by EC$0.25 cents (US$0.09 cents) to EC$15.63 (US$5.78) while reducing the price of diesel by two cents to EC$15.55 (US$5. 75) effective immediately.
He said the decision was based on the fluctuations in prices for gasoline and diesel over the past two months.
“The public should note that the import price of gasoline increased by 50 cents (US$0.18 cents) a gallon during the aforementioned period, notwithstanding the increase to the consumer is only 25 cents (US$0.09 cents) a gallon.
“To achieve this government had to absorb the difference by further reducing the excise tax on gasoline from EC$1.90 (US$0.70 cents) a gallon to EC$1.65 (US$0.61 cents). This marks the second consecutive month that Government has effected such a reduction.
“Therefore, if the tax was not reduced further, the retail price of gasoline would have increased by 50 cents to $15.88 (US$5.88) a gallon,” King added.
King said that the government had over the last two fuel price changes reduced the take rate by nearly 50 per cent in order to minimize its impact on consumers.
He said that the reduction in the tax comes at a significant financial cost to the government resulting in a monthly reduction in revenue of nearly EC$$1.4 million (US$518, 510)
“The reduced revenue from fuel coupled with the increase in the subsidy on the 20-pound cylinder LPG, have implications for the government’s budget,” he said, noting that the necessary budgetary arrangements will have to be made.
“We are hopeful that the reductions in international oil prices will continue resulting in lower retail prices of fuel in St. Lucia in the coming months,” he King said, noting that the price of oil on the global market had dropped below US$100 a barrel.
President of the Petroleum Dealers Association (PDA) Clinton Charlery Friday cautioned the government against further increases in the price of petrol noting that businesses were incurring heavy losses.
Charlery also called on the government to meet with all stakeholders to discuss the issue, adding that gas retailers were on the brink of collapse. (CMC)
