Government Modifies Fuel Pass Through Mechanism
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Government Modifies Fuel Pass Through Mechanism
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Contact: Shannon Lebourne
Tuesday, May 15, 2012 – Consistent with policy to protect Saint Lucians from further hardships at a time of global economic recession, Government has adopted a modified version of the Fuel Pass Through Pricing Mechanism.
Effective Monday May 14th, 2012, consumers pay a marginal increase in the retail price of gasoline, but there are savings for diesel users, in keeping with changes in global oil prices.
While the price of gasoline increased by six cents from EC$3.36 to EC$3.42 per litre, the price of diesel dropped to EC$3.37 from EC$3.39. Retail prices for cooking gas and kerosene remain unchanged.
The new policy on fuel prices allows for the retail price of fuel to be adjusted every three months rather than on a monthly basis.
In explaining the fuel policy during his recent budget presentation, Prime Minister Honourable Dr Kenny Anthony told the Parliament the mechanism desired modification because although it benefitted government it created to much uncertainty for consumers.
“The system has never worked in all its purity. While it was introduced by the former Administration, there was never consistent and faithful application of it. So, for example, when fuel prices increased from May 2011, the Government resiled from implementing the “Pass Through Mechanism” and opted, on more than one occasion, to reduce the Excise Taxes. In more recent times, this current Administration has coped by sharing the burden of the increases between Government and consumers. While there is no doubt that the monthly adjustments would better protect Government Revenue, it is equally true that constant changes of fuel prices produce greater uncertainty among consumers and businesses”.
The Prime Minster says the new fuel policy was adopted following careful consideration and analysis of different versions of the mechanism.
Under the new St Lucia model, consumers are advised the retail prices of fuel products will next be adjusted in or around the second week of August. |
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