CASTRIES, St. Lucia - The St. Lucia government Monday announced an increase in energy prices blaming the ongoing global situation, particularly the war between Iran and the United States for the price hike.
Prime Minister Phillip J. Pierre told reporters that during the three-week period, May 4-24, crude oil prices for the US benchmark WTI prices increased by 5.5 per cent to an average of US$100.72 per barrel.
“This increase in oil prices was due mainly to factors beyond our control. These include continued closure of the Strait of Hormuz, related to the U.S. Navy blockade of Iran ports, a fading hope of a lasting ceasefire between Iran and the U.S., and the slow progress and doubts about a peace deal between the U.S. and Iran,” Pierre told reporters.
He said that the prospects of peace during the three week period “were very dim” and that “under the existing scenario, which will start from the 1st of June, the retail prices for products will be….gasoline, EC$16.75 (one EC dollar=US$0.37 cents) per imperial gallon,
“The retail price of kerosene will be EC$10.41 and the retail price for both the 20-pound and 22-pound cylinders of LPG will remain unchanged at EC$34.20 and EC$38.22.”
But Pierre said that the subsidies on these two LPG products will be EC$35.46 and EC$38.41 respectively, meaning that “if the government did not subsidise LPG gas, the price of a 20-pound cylinder would be EC$69.46.
“That would be the price of a 20-pound cylinder if the government did not subsidise it by EC$35.46. And if the government did not subsidise the 22-poundcylinder, the price…would be EC$69.41,” Pierre said, adding that the price of the 100-pound cylinder will remain the same for the period.
Pierre said based on the negative excise tax rate of 86 cents per gallon on gasoline, the government that every gallon of gas sold.
“There’s a negative excise duty. We have to pay the dealer 86 cents on every gallon of gas that’s sold. EC$101.21 on every imperial gallon of diesel. The subsidy for the three weeks is expected to be EC$1.2 million on these two products only,” Pierre said, adding “this is EC$7.2 million below the budgeted levels for the period 2026-2027.
“It’s $7.2 million less than what we budgeted up to now for 2026-2027. For 2026-2027 so far, the excise tax revenue collections from gasoline and diesel are expected to be EC$10.2 million below the budgeted period 2026-2027 by EC$23.5 million.
“We budgeted EC$23.5 million. We expected to collect EC$10.2 million. So we are below budget. The subsidy for LPG products amounts to EC$6.5 million, which is EC$3.9 million above the amount budgeted for the period.
“We always budget LPG gas, but this year the budget is going to be EC$6.9 million above what we budgeted for. So this is the situation,” Pierre said, promising the public that as soon as there is any positive change in the international situation, it will be passed on to the consumer.
