Fuel Prices Go Up Despite Government's Best Efforts |
Contact:
John
Emmanuel
Friday, October 13,
2000
- Beginning Monday, St. Lucians will have to put out
an additional fifty cents per gallon for unleaded gasoline. The price of diesel
has also increased from $5.98 per gallon to $6:50 per gallon. Prime
Minister and Minister for Finance & Economic Affairs, Honourable Dr. Kenny
Anthony, announced the increases on Friday, saying that government could no
longer maintain the losses in revenue in its attempt to keep the price of fuel
to consumers at existing levels. He
told the nation that between April 1999 and August this year consumption tax
receipts on fuel have plummeted and government has lost over $24 million dollars
in revenue as it tried to maintain the retail prices of fuel. Such a situation,
Dr. Anthony, said could no longer continue. “The
continued decline in consumption taxes from petroleum will, if not arrested,
lead to a decline in government savings and accordingly handicap the capacity of
government to provide counterpart financing for its capital expenditure.
Moreover, the overall public sector savings target of 8.0% of GDP and the
central government savings target of 3.2% of GDP will not be realized. We will
therefore not be able to draw down the balance of grant funds (STABEX) from the
European Union. Frankly, I would be irresponsible if I had to maintain the
current situation,” said Prime Minister Anthony. Under
the new pricing structure, three cents per gallon will go to petroleum dealers
who for months have been pleading for an increase in their margin. Dr.
Anthony also announced increases in relation to kerosene and cooking gas.
The retail price for kerosene will go up by 20 cents per gallon while the
retail price of a 20-pound cylinder of cooking gas will increase by 80 cents.
It will now be sold at $28.20. The retail price of a 100-pound cylinder
will increase by $13.00 and will be sold at $150.00. Distributors
of cooking gas will receive a 2-cents per pound increase under the new pricing
structure. The
Prime Minister said these measures to halt the losses in government revenue
might not achieve the desired result if fuel prices continue to increase on the
world market. |
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