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.

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