[Feedback]

[Site Map]

[Contact Us]

Oil Prices Fuel Concern After Reaching 30-year High

Contact: George Jude

Thursday, April 08, 2004 - Concern is mounting in St. Lucia and the rest of the Caribbean over the rising cost of fuel on the world market, which last week reached a 30-year high of US$37 per barrel.

According to oil industry analysts, in April 1988, a barrel of oil on the international market cost US$15; recently, it costs more than double that price at US$34 per barrel. But just a few days ago, world prices shot up to US$37 per barrel, the highest it has reached in the past 30 years, fuelling concern among non-producing countries of the developing world.

These days, world business news reports constantly refer to the exceedingly high price of fuel in the United States. And at the regional level, the price hikes have already begun to bite.

In neighbouring Dominica, the government has already been forced to increase the price of gas at the pumps. Just last week, the country’s Ministry of Trade announced that the new price for fuel was EC$8.45 per gallon. This was the third price hike in six years; the second was in January, when the retail price increased from EC$7.96 to EC$8.04 per gallon.

The Government of St. Lucia over the years has been cushioning the effect of the rising price of fuel at a cost to the economy of over EC$5 million in revenue not collected. Thanks to the government’s subsidy, fuel prices at the pumps today are still kept comparatively stable at EC$7.75 per gallon.

Asked to comment on the increasing world price for oil, Prime Minister and Minister of Finance, Dr Kenny D. Anthony said the rising cost of fuel “is causing havoc on developing countries, as they have to buy fuel at world market prices.”

Dr Anthony, who is also Minister responsible for Economic Affairs, InternationalFinancial Services and Information said, “The OPEC (Organisation of Petroleum Exporting Countries) member-states need to understand the serious damage that’s being done on developing countries.”

“If this situation continues,” the Prime Minister added, “it can seriously compromise the economic recovery currently underway.”

Dr Anthony said the Government of St. Lucia “will continue to advocate fuel efficiency and the search for sustainable alternatives.” But in the mean time, he said “we must keep our eyes on the world market price, just in case we have to face and meet any consequences for our national economic recovery.
 

[ Home ] [ Up ] [ Search 2004 Press Releases ] [Site Help]

© 2004 Government Information Service. All rights reserved.

Read our privacy guidelines.