Fuel Prices Rising

The Antigua and Barbuda government says it is continuing to subsidise gasoline despite the latest increase that pushed the price at the pump to $17.99 per gallon.

Director General of Communications Maurice Merchant said Thursday that consumers would be paying considerably more if the government removed the subsidy it currently uses to cushion fuel prices.

“The government continues, even though with these increases, the government is still subsidising,” Merchant said during the post-Cabinet media briefing.

“If the government were to remove the subsidies that it is cushioning these prices with, prices will be far more expensive,” he added.

Gasoline increased to $17.99 per gallon on October 1 amid higher international energy prices.

Merchant pointed to rising energy costs internationally and disruption around the Strait of Hormuz as factors continuing to put pressure on prices.

He said vessels carrying fuel, food and other goods have been affected by conditions in the area, with the disruption having consequences for economies around the world.

Merchant said Antigua and Barbuda is particularly vulnerable because of its heavy dependence on imported goods.

“We purchase, we import everything and due to that situation prices have gone up and will continue to go up,” Merchant said.

Merchant reiterated at the end of the briefing that the $17.99 gasoline price reflects higher international energy costs but does not represent the full increase consumers would face without continued government intervention.

This article was originally published by Antigua News Room. Read the original article here: Antigua and Barbuda Government Says It Is Still Subsidising Gasoline Despite Price Increase to $17.99.