Vincentians buying gasoline at the pump are set to get an EC$1.02-per-gallon break from Monday, Prime Minister Godwin Friday told Parliament on Thursday.
Meanwhile, diesel users will see small increases, and low-sulfur diesel users a larger one, as the government continues tax relief amid volatile fuel costs.
“That is good news,” Friday said of the gasoline reduction as he made a ministerial statement to Parliament.
The wholesale price of gasoline will fall from EC$17.55 to EC$16.53 per gallon, while the price at the pump will drop from EC$18.31 to EC$17.29.
“That is a big reduction of $1.02 per gallon,” Friday said, describing the change for consumers.
The adjustment follows the latest three-month moving-average price build-up, Friday said. It showed a favourable change of EC$1.02 for gasoline, compared with increases of four cents for diesel and 33 cents for low-sulfur diesel.
Diesel wholesale prices will rise from EC$16.87 to EC$16.91 per gallon, and retail prices from EC$17.53 to EC$17.57.
Low-sulfur diesel will increase from EC$16.74 to EC$17.07 wholesale and from EC$17.40 to EC$17.73 at the pump.
“For diesel, unfortunately, we move a little bit in the wrong direction,” Friday told the House, adding that the changes “reflect the current market conditions”.
The prime minister said the government would continue its 50% reduction in excise tax on all three fuels, describing it as part of efforts to shield households and businesses from rising costs.
The prime minister said the government was “doing what we can to cushion the impact” of volatile and higher oil prices, he said, referring to the continuing war in the Gulf.
Friday also pointed to pressure on electricity bills, noting that the VINLEC surcharge for the October bill had risen to 86.71 cents per kilowatt-hour, an increase of seven cents.
The monthly electricity subsidy stood at EC$798,591, he said, adding that without it, the surcharge would be 92 cents.
Since cost-of-living measures began in May, the subsidy had totalled EC$3.9 million, the prime minister told Parliament.
He suggested that the price relief should be paired with efforts to use less fuel and electricity.
“We have to continue to do all we can to conserve,” he said, urging people to consider walking for short trips and to be mindful of household power use.
He framed the price swings as another reason for the country to reduce its reliance on imported fossil fuels.
“We, as a country, we have to take the decision that we are going to move aggressively away from fossil fuels, from oil and gas, towards renewable energy,” Friday said.
He added that the transition would require “commitment to do it, not just talk”, and said the government would set out its plans in future statements.