SVG likely to face higher energy costs within 12 months – PM

Prime Minister, Dr. Godwin Friday, outlined several regional and international matters during a press conference on March 3, 2026, following the 50th Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM).

Dr. Friday, who also serves as Minister of Finance, Legal Affairs and Justice, Economic Planning, and Private Sector Development, warned that St. Vincent and the Grenadines faces a “high likelihood” of experiencing high fuel cost within the next 12 months.

“We anticipate that there is going to be a very high risk of us experiencing increasing fuel cost and this has so many implications,” he said. The prime minister cautioned that escalating fuel prices, along with rising transportation and connectivity costs, could have ripple effects across the domestic economy. He indicated that increased energy costs may drive up food prices and place additional strain on households and businesses.

The prime minister noted that tourism will also be affected as a result given the nation’s dependence on this sector.

“Tourism creates jobs and it’s one of the fastest growing sectors of our economy.” He said occupancy rates will also be affected and that is among the issues about which the administration has to be alert.

In addition, Dr. Friday spoke about the risk of imported inflation and “subsequent cost living crisis’’. He said that this will create serious problems.

“We implemented measures intended to address the cost of living crisis”, he said, citing the VAT free day as an example.

Dr. Friday also expressed his desire to see a more traction in regional integration efforts, particularly the implementation of the free movement of people among Belize, Dominica, Barbados, and St. Vincent and the Grenadines, adding that the initial phase of the arrangement has been functioning effectively among the participating states.

“There has been a report as to how it has been functioning… participant member states have reported that the free movement successfully commenced across all four participating states.”

He noted that Barbados and SVG have already enacted necessary legislation but Belize and Dominica are yet to put their legal framework in place. Despite this Dr. Friday said the free movement initiative represents a significant advancement in strengthening regional integration and improving mobility within the Caribbean Community (CARICOM).

The prime minister signalled the government’s intention to continue working closely with CARICOM partners to navigate humanitarian concerns, decrease economic shocks, and safeguard national interests in an increasingly complex global environment.