The price of Liquified Petroleum Gas (LPG) in St.Vincent and the Grenadines has been increased.

The announcement was made by Deputy Prime Minister, Sir Louis Straker on Friday, March 31.

This came after two meetings between Texaco and the Ministry of Trade, one in January and the other in February, which sought to negotiate a reasonable price for LPG.{{more}}

“After much negotiations we sought really to make sure that the company would have a price that is reasonable to them, to give them a reasonable return on their commodity and at the same time affordable to this country,” said Straker.

He said the Cabinet on the advice of the officials in the Ministry of Trade agreed to give an increase on LPG that they consider to be fair to both Texaco and the consumers.

In relation to Areas 1 and 2, i.e. Kingstown and its immediate surrounding areas, Texaco instead of getting the requested $42 for the 20lb cylinder which was previously sold for $30, will now get $35. Likewise instead of getting $52.99 for the 25lb cylinder as requested up from the previous $38, Texaco is now being offered $44. With regard to the 100lb cylinder, instead of getting $199 as they had wished, up from $139, it is suggested that they get $163.The price paid for the 100lb cylinder in Areas 1 and 2 holds for Area 3 but in Area 4 consumers will pay $184.

On the 25lb cylinder the price has increased to $45 in Area 3 and $48 in Area 4. And on the 20lb cylinder consumers in Area 3 will pay $36 and $40 in Area 4.

“This saga may well not be over. We do not know whether Texaco is going to accept the price which has been imposed by the Cabinet. I hope we see the end of this saga so that we can move on,” said Prime Minister Gonsalves as he shared his views on the issue.

Prime Minister Gonsalves however said he would have “danced Texaco a little while longer” if he had been the one faced with making the decision. The Prime Minister was out of the island when the decision to increase the price of LPG was made.

He said he understands that his Cabinet acted on the advice of the technical persons in the Ministry of Trade.

Meanwhile, Straker said the price of the LPG coming from Venezuela was also increased. For the 22lb cylinder, the price has been increased from $25 to $29. The 100lb cylinder will cost $163.

Straker said the increase in price of LPG from Venezuela was due to the fact that the Government now has to pay commercial rates for transportation. Three previous shipments were brought to St.Vincent and the Grenadines but they were done courtesy the Venezuelan Navy.

The price of LPG was brought under price control by the Government in July 2005.