St Lucia announces increases in energy prices

CASTRIES, St Lucia, CMC — The St Lucia government on Monday announced an increase in energy prices, blaming the ongoing global situation, particularly tensions involving Iran and the United States, for the price hike.

Prime Minister Phillip J. Pierre told reporters that during the three weeks from May 4 to 24, crude oil prices for the US benchmark WTI 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 the continued closure of the Strait of Hormuz, related to the US Navy blockade of Iranian ports, fading hopes of a lasting ceasefire between Iran and the US, and slow progress and doubts surrounding a peace deal between the US and Iran,” Pierre told reporters.

He said the prospects for peace during the three weeks “were very dim” and that, “under the existing scenario, which will start from June 1, the retail prices for products will be... gasoline, EC$16.75 per imperial gallon.

“The retail price of kerosene will be EC$10.41, and the retail prices for both the 20-pound and 22-pound cylinders of LPG will remain unchanged at EC$34.20 and EC$38.22, respectively.”

However, Pierre said 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$69.66.

“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-pound cylinder, the price... would be EC$76.63,” Pierre said, adding that the price of the 100-pound cylinder will remain the same for the period.

Pierre said that based on the negative excise tax rate of 86 cents per gallon on gasoline, the government is effectively subsidising every gallon sold.

“There’s a negative excise duty. We have to pay the dealer 86 cents on every gallon of gas that’s sold. The subsidy on every imperial gallon of diesel is EC$1.21. 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 EC$7.2 million less than what we budgeted up to now for 2026-2027. So far, excise tax revenue collections from gasoline and diesel are expected to be EC$10.2 million below budget for the 2026-2027 period.

“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 for LPG gas, but this year the amount 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 consumers.

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