Pierre: Government Striking A Balance Between Subsidising Fuel, Protecting Consumers

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Amid a price hike locally for some fuel products, Prime Minister Philip J. Pierre says the government has decided to strike a balance between subsidising fuel and protecting the consumer from very steep increases at the pump.

In an address to the nation Sunday night, Pierre explained that the government has been absorbing increases by lowering the excise tax on fuel, thus shielding the public.

Effective Monday, gasoline and diesel prices increased by $1.00 from $13.95 to $14.95 per gallon.

LPG 100 lb. cylinders increased from $257.95 to $266.43.

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However, Pierre, responsible for finance, said the government would continue to subsidise the 20 and 22 lbs. cooking gas cylinders.

“We believe this to be the best compromise at this time,” he explained.

According to the PM, it leaves the government with excise tax revenue of only 27 cents per gallon on gas and 19 cents per gallon on diesel.

He described the revenue as much less than the $4.00 excise tax budgeted by the former government.

“If our government was to adopt the $4.00 per gallon excise taxes as budgeted by the UWP at current prices, the price of gasoline would be $18.68 and diesel $18.76 per gallon,” Pierre declared.

Pierre explained that given the price hikes in the most recent shipments following the Russian invasion of Ukraine, the government would not only collect zero excise tax revenue from fuel, but it will incur a subsidy of $0.73 per gallon on gasoline and $0.81 per gallon on diesel if prices remain the same.

He told his audience that this would amount to a subsidy of $1.1 million monthly compared to targeted positive excise tax revenue of $5.2 million.

And Pierre declared that the subsidy would increase further should international oil prices continue their upward trend in the short term if the Russia-Ukraine escalates and further disrupts the global economy.

Pierre said the government needs revenue to provide essential services and increase police resources to fight the ‘disturbing’ crime wave.

Nevertheless, he asserted that in these unfortunate times inflicted by circumstances beyond our control, the government remains committed to managing its finances prudently while endeavoring to mitigate the anticipated pressures of increases in imported goods.

At the same time, he urged consumers to adjust their consumption as much as possible to minimise the burden of price hikes.

 

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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.

9 COMMENTS

  1. Get real St. Lucians, are we in tune with the global economy That affect all economies around the world a citizen of France we the working class pays a huge percentage of our income in taxes to maintain the government’s social programs.

    If we want to compare St.Lucia with these countries which barely have enough people to maintain its economy think again and let’s get real.

    St.Lucian wants to develop their country on a freeness culture this is not being realistic.

    In small economies government mush eliminate wastage and corruption. To mitigate lots of the economic challenges they face .

  2. Pierre keeps choosing what to compare between SLP & UWP. Once he has to make a decision it is like he is saying ” don’t blame me for the decision I took if it affects you negatively, it is the last administration fault”. He wants to look good so he blames UWP for everything that will negatively impact us. I’m waiting for the budget to see what he will increase. Decrease from one place and increase in another. Then he will keep singing it is the last administration heavy borrowing. He always has a scapegoat.

  3. Is it just me or did last night’s address sound weirdly similar to KDA’s address to the nation on June 10th 2014? Everything, from the finger-pointing to the beggar-style pleas for patience, made me feel like I was going back in time. Hell, there was even a subtle hint that we should “tie our waist”, like the Doc said back then; and let’s not forget the soul-snatching phrase “my brothers and sisters” that our politicians seem to absolutely love using when a plea for unity is convenient to them. Real deja-vu I tell you folks. Seems like a case of the more things change, the more they remain the same down here in Lucia. Awa, flambeau still uh power (in the words of the Educator)!

  4. Why is Pierre not getting out of campaign mode. It’s time to reset the button and realize that you are now Prime Minister. Before the UWP was voted out of office, gas prices started going up and the government simply lowered the excise tax to under $4.00 to stabilize gas prices. So what is Pierre achieving by indicating that if UWP was in power gas would be over $18.00, there is no merit in your statement. UWP is not in power, you are, so stop that petty politics and govern the blasted country before our ship hit rock bottom. Right now we are sinking but many of us are bailing out water to prevent it from going under.

  5. The man still campaigning. SMH. But make this make sense, the prices were lower when y’all won the elections, but has steadily been increasing ever since after that, if y’all removed the $4.00 from the UWP administration, shouldn’t prices be even lower. Who y’all fooling

  6. all mate can do and say is adjust our consumption and take things as we get it. he said that they would continue to subsidize the 20 and 22 lbs when the last times i checked the prices of gasoline rose twice or three times already before this and the only change was that gasoline and diesel for vehicles remained the same while the gas for homes were raised each time, that to me does not sound like the cylinder gas was being subsidized

    • Yes it is. And it was $90 a barrel before February 24th. So blaming this on the “war” is BS. And in 2020 prices were less than $10. In fact for some days price was negative. Producers paid you to take oil from them. Did you see any corresponding drops in prices here or reduction in electricity cost? You cannot claim you reflecting market prices only when prices increases. If prices increase by 50% sure you can increase by some metric. But if prices decrease by 50% use the same metric to reduce end prices. It is profiteering by the government and gas stations.

  7. How come prices move mostly up. For most of 2020 oil was below $20 a barrel. Lucelec didn’t lower price. Gas prices barely dropped. Now this. Y’all crooks.

Comments are closed.

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