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Contact:
John Emmanuel
Friday, April 23, 2004 - Prime Minister, Honourable Dr. Kenny Anthony
says government is not proposing any change in the retail price of fuel at this
time. As part of his 2004/05 Budget presentation, Dr. Anthony, who also holds
the portfolio for Finance and Economic Affairs said government could not
however, continue to forego revenue needed for development.
He informed the nation that government intended to monitor movements in the
international oil price market, with the possibility of reviewing the price
regulatory mechanism if the current trend is sustained. Since 1998, the average
world market price of oil has more than doubled, from US$15 per barrel to
approximately US$37 per barrel as at mid April 2004.
Said Dr. Anthony, “It is important to note here Mr. Speaker that while oil
prices have increased by 150 percent over the past five years, the adjustments
made have only increased domestic prices at the pump by 30 percent, as
government took the responsible policy decision to shield consumers from the
full increase in prices.”
This price regulatory mechanism he noted had resulted in forgone revenue to
central government tolling $53.4 million over the five year period. “Today, the
price of gasoline and diesel charged to consumers in St. Lucia is comparatively
lower than the price charged in Barbados, Dominica, Belize, The BVI, and Turks
and Caicos,” said Dr. Anthony.
He told the nation that the rising price of oil on the world market was having a
debilitating impact on small developing countries as they strive to meet their
development goals.
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