May 19, 2006
SVG braces for another gas hike

If Prime Minister Dr. Ralph Gonsalves’ concern about the fuel subsidy is anything to go by, another price increase may be imminent. In response to a question last Tuesday, the Prime Minister hinted that another hike in the fuel price is on the cards.

He disclosed that the government was subsiding the fuel price by $1.74 per gallon, which amounted to $1.1 million per month.{{more}}

Dr. Gonsalves was reporting on a trip to Spain and Austria made recently and he seemed anxious about the extent of gasoline usage here. He noted that despite the recent increase in fuel at the pump, “consumption is going up. They (are) just buying more and more.

“We can’t behave as though we are a rich country,” the Prime Minister stated.

He noted the constant price increase and outlined: “We have to do something.”

He expressed the view that “we have to be mindful of certain persons involved in public transportation,” perhaps in reference to the operators of buses, vans and taxis.

He noted that energy price was “skyrocketing” and that the oil price had doubled from $32 a barrel in 2000.

“We are seeking ways and means to come to terms with those challenges,” the Prime Minister mentioned.

He stated that an arrangement with the Petro Caribe was one option but he suggested that other measures might be needed.