Government Continues To Experience Revenue Shortfalls On Fuel Subsidies

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Despite the 8.5% inflation rate, the largest in forty (40) years which is being experienced by the United States, Saint Lucia’s largest trading partner, the COVID-19 pandemic, and the Ukraine- Russia conflict, the government continues to cushion the impact of rising global oil prices during the latest fuel prices adjustment on May 2nd, 2022 for the three (3) week period ending May 22nd,2022.

The subsidies on the 20lb and 22lb cylinders of gasoline are being subsidised by $25.30 and $27.83 respectively.

These subsidies represent an estimated $2.9 million shortfall in government revenue.

Similarly, the government continues to provide subsidies on gasoline and diesel where it collects $0.00 in excise tax on gasoline.

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As previously stated by the Prime Minister, Hon. Philip J. Pierre, “Shortfalls in revenue will have serious implications for the government’s already strained cash flow and its ability to meet critical expenditures in areas such as healthcare, education, social assistance, wages and salaries, and debt payments. Collections from the excise tax on gasoline and diesel are needed to finance government operations, including the provision of supplies to hospitals and health facilities, the management of COVID-19, and the provision of educational equipment and supplies.”

Notwithstanding the challenges, the government’s comprehensive and people-centric budget for 2022/23 is expected to ease the impact of the ongoing COVID-19 pandemic, the Ukraine-Russia conflict, and its effect on rising inflation and global oil prices.

Source: Office of the Prime Minister

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

16 COMMENTS

  1. Never forget that it’s taxes which keep must if not all governments afloat, particularly those with like us, with limited natural resources or other alternatives. Don’t depend on government too much because they depend on you paying taxes, to keep functioning. Your best option is to spend less particularly on nonessentials . Grow your own. You don’t need acres. You can produce in 5 gallon buckets like I do. The worst part is, things are expected to get much worse as there is no light at the end of the tunnel. Stop procrastinating. Get up and get !

  2. piere shut your banana hole, what strained cash flow? the amount of vehicles that coming on the port and the amount of money that is being made by the government everyday when someone goes to clear a vehicle not to mention the amount of people that buying and selling land everyday and all these transactions are being taxed heavily especially when the cost is high so what strained cash flow you coming and talk about there. chewps

  3. What did I post last week when the King Jackass of The United Worthless Party was beating his usual ass…..”.What does he want the government of Little St Lucia to do BUY HIGH AND SELL LOW EVENTUALLY THERE WILL BE A DEFICIT SHORT FALL AND THAT SHORT FALL IS BOUND TO AFFECT THE ECONOMY AND DAY TO DAY OPERATIONS OF THE GOVERNMENT.” No the so called “businessman” could not see this, and his idiot admires as well. Even in Trinidad of all places gas price has gone up, so we need to stop complaining and revaluate our lifestyle

  4. Big Oil has stopped investing new money into the oil industry because it is on its way out. They will continue to manipulate the current supply to keep the price of oil elevated to make the most profit as possible. This will keep inflation raised for sometime. The central banks have started to raise interest rates to slow down the economy and inflation. If you are invested in stocks and other risk assets, I hope you have protections/hedge in place because its going to be tough going forward. Caribbean leaders must invest in energy and food security or we will all be left to the mercy of Big Oil.

    • It was only for less than 2 days. Actually it was below zero. It was useless because the world was on shut-down. No one was trading.

  5. What you did not include, when you conveniently referred to the USA 1981 Inflation rate, is that the 8.5% peaked in March and is expected to go down, though the Russia/Ukraine war is still ongoing. A war that is nothing close to the Iraq war of 2008 in terms of the fuel price.

  6. What a waste. Heavily dependent on foreign products. No resources of their own whatsoever but want to chastise people or the white man. Cannot even help their own. Soon they will raise taxes because the loan has to paid and they will reiterate the same line– Ukraine war, blah blah blah.

  7. That’s what happens when you kiss USA behind. Petrocaribe was an option y’all morons gave the finger to.

Comments are closed.

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