Motorists in Saint Lucia will pay more for gasoline from June 1 as the government adjusts retail fuel prices in response to rising international oil costs, Prime Minister Philip J Pierre announced during Monday’s pre-Cabinet press briefing.
Pierre said the increase is being driven by developments in the global energy market that remain beyond the government’s control.
“To announce that the retail price of gasoline is going to be increased from today. This is basically due to what’s happening in the international world,” the Prime Minister stated.
He explained that crude oil prices rose significantly during the review period.
“During the three-week period May 14 to 24 crude oil prices for the US benchmark WTI prices increased by 5.5 percent to an average of a hundred dollars and 72 cents or EC 273.64 dollars per barrel,” Pierre said.
According to the Prime Minister, several geopolitical developments contributed to the increase in oil prices.
“This increase in oil prices was due mainly to factors beyond our control,” he said.
“These include continued closure of the Strait of Hormuz, related to the US Navy blockade of Iran ports, a fading hope of a lasting ceasefire between Iran and the US and the slow progress and doubts about a peace deal between the US and Iran that was between May 4th to May 24th. And there are continuous strikes happening so prospects of peace during that period were very dim.”
Under the revised pricing structure, motorists will see a modest increase in the cost of gasoline.
“Under the existing scenario, which is that from the 1st of June, the retail prices for products will be as follows. Gasoline, $16.75 per imperial gallon, which is $1.20 below the historical high of $17.95 in the year 2022,” Pierre announced.
The retail price of kerosene will be set at $10.41 per imperial gallon.
Despite the increase in fuel prices, the government has opted to maintain existing prices for cooking gas through continued subsidies.
“The retail price for both the 20 pounds and 22-pound cylinders of LPG will remain unchanged at $34 for the 20 pounds and $30 for the 22 pounds,” Pierre said.
He revealed that government subsidies remain substantial.
“The subsidies on these two LPG products will be $35.46 on the 20-pound cylinder and $38.41 on the 22-pound cylinder.”
Pierre noted that without government intervention, consumers would face significantly higher LPG prices.
“So that means if the government did not subsidize LPG gas, the price of a 20-pound cylinder would be $69.46,” he explained. “That would be the price of a 20-pound cylinder if the government did not subsidize it by $35.46.”
Similarly, he said a 22-pound cylinder would cost more than double its current retail price without support from the government.
“And if the government did not subsidize the 22-pound cylinder, the price of the 22-pound cylinder would be $69.41.”
The Prime Minister added that the retail price of the 100-pound LPG cylinder will also remain unchanged, despite continued government assistance.
“The price of the 100-pound cylinder will remain the same for the period,” Pierre stated.
“And even if it remains the same, the subsidies on the 100-pound cylinder is $58.82 per cylinder.”
While acknowledging the financial strain caused by rising energy costs, Pierre assured the public that government programmes announced in the national budget remain on track.
“The government will continue to subsidize the, remove the VAT on building materials,” he said.
He also reaffirmed commitments made during the April budget presentation.
“So we’re going to continue to pay the five CXC subjects as we promised. And all what we promised in the budget up to now, we see no reason why it should be changing.”
However, Pierre cautioned that international fuel prices continue to place pressure on government finances.
“But we are under tremendous revenue pressure as far as gas products are concerned,” he said.
Despite those challenges, he maintained that the administration does not foresee any immediate changes to its planned programmes and commitments.
“But we do not think there will be any change in what the public was promised in my budget of April this year.”