GOVERNMENT EXTENDS TEMPORARY RELIEF MEASURES TO CUSHION RISING FUEL AND SHIPPING COSTS

Cabinet Secretary, Dr Marcus L Natta, during the July 28 Post-Cabinet Briefing, announced that the Government of Saint Kitts and Nevis will extend its temporary support and relief programme through September 30, 2026, reaffirming its ongoing commitment to protecting households and businesses from the rising cost of living.

Earlier this year, the government introduced the programme to cushion the impact of increasing living and operating costs, a response to higher international fuel and shipping prices driven by ongoing geopolitical tensions in the Middle East and their ripple effects on global supply chains. As part of the initiative, Cabinet approved a series of temporary fiscal measures for the period April 30 to July 31, 2026, aimed at reducing the cost of imported goods and easing inflationary pressure on fuel prices across the economy.

Following guidance from the Ministry of Finance, Cabinet has now approved an extension of the programme from August 1 to September 30, 2026, on the same terms and conditions currently in effect.

The extension will continue to provide:

* A 50 percent reduction in the Excise Tax applicable to eligible gasoline;

* A 50 percent reduction in Customs Service Charges on gasoline; and

* The exclusion of shipper surcharges from customs tax and duty calculations.

While the relief measures had initially been set to expire on July 31, 2026, continued volatility in international fuel markets and shipping costs, driven by ongoing geopolitical developments, has prolonged the inflationary pressures affecting consumers and businesses across the Federation. In light of this, the government has taken the prudent step of extending these measures to ensure that residents and businesses continue to receive meaningful relief during this period of global economic uncertainty.

The extension is expected to provide targeted relief to consumers and businesses, support continued economic activity, and help moderate the impact of higher fuel and shipping costs on the domestic economy.

The government remains committed to closely monitoring global economic conditions and will continue to take timely, responsible action to safeguard the wellbeing of the people of Saint Kitts and Nevis.