Government Owes Nearly EC$10 Million to Keep Fuel Prices Stable, Browne Says

The government owes nearly EC$10 million to West Indies Oil Company after foregoing fuel tax revenue to shield consumers from rising global energy prices, Prime Minister Gaston Browne said Saturday.

Browne said the debt reflects the administration’s decision to subsidize fuel costs rather than pass higher international oil prices on to motorists, a policy he said has helped keep gasoline and diesel prices among the lowest in the Caribbean despite ongoing geopolitical instability.

“I would have said on several occasions that we now owe West Indies Oil Company probably about close to $10 million right now as a result of the fact that instead of collecting a tax, we’ve been paying them to keep the cost at $14.25 for gasoline and $14.50 for diesel,” Browne said during his weekly Pointe FM programme.

The prime minister said the government’s intervention has kept fuel prices below those in most Caribbean countries despite increases driven by international events.

He attributed the latest pressures to global conflicts, including the war in Ukraine and tensions involving Iran, which have contributed to higher energy costs worldwide.

“We were able to contain the costs of fuel, but it came at a cost to the government,” Browne said. “We’ve been paying them to keep the prices where they are.”

According to Browne, gasoline continues to retail at EC$14.25 per gallon while diesel remains at EC$14.50, prices he said are lower than those found in most Caribbean countries, with the exception of oil-producing nations.

He said the administration intends to maintain price stability for as long as possible, arguing that predictable fuel prices benefit households and businesses alike.

“When the good days come and we start to make some money, nobody should grumble,” Browne said. “At the end of the day, when the bad days arrive, you can be sure that we’ll provide a cover for you, the people.”

Browne said the government is not seeking to reduce fuel prices further, contending that excessively low prices could encourage unnecessary fuel consumption.

“You don’t want gas prices to be too low because that will fuel excessive consumption, and on the other hand you don’t want them to be too high,” he said. “That $14.25 and $14.50 is reasonable.”

He said the government’s long-term objective is to reduce energy costs through the introduction of liquefied natural gas and increased investment in renewable energy, rather than through permanent fuel subsidies.

“Our goal is to keep the prices there until such time as we can get alternatives to drag down the price of fuel,” Browne said.

This article was originally published by Antigua News Room. Read the original article here: LISTEN: Government's Bill to WIOC Nears EC$10 Million as It Keeps Fuel Prices Down.