December 8, 2006

Prime Minister says expect reduction of prices at pump

FUEL PRICES are expected to be reduced when the 2006/2007 Budget is presented Monday.

Prime Minister Dr Ralph Gonsalves said that St Vincent was “very strong” in supporting the proposed “Full Past Through System” presented by the Eastern Caribbean Central Bank (ECCB) to the ECCB Monetary Council last year.{{more}}

That proposal was for government to pass on reductions and increases expeditiously but Gonsalves said what countries had to consider with its implementation was whether the reduction would be sustained or whether it was episodic.

“You would recall many countries including St Vincent suffered extensively. In our case our prices were so low we were subsiding gasoline in the amount of $1.2 million.”

Gonsalves said the timing of the price changes depended on the sophistication of the system. In some places, such as the United States, the prices change daily at the pump but in other places it may be monthly.

He said the matter will be addressed in a budget “in a manner which will not displease Vincentians”.

Last week St Kitts/Nevis reduced their rates under the “Full Past Through System” joining Antigua and Barbuda, Anguilla, Dominica, and Montserrat which also reduced their prices.