Government Holds Fuel Prices Steady as Subsidy Costs Reach EC$6.5 Million
The government of Antigua and Barbuda will maintain current fuel prices despite rising global energy costs, continuing a policy that has resulted in an estimated EC$6.5 million subsidy bill to the West Indies Oil Company, Director General of Communications Maurice Merchant said Thursday.
Speaking during the weekly post-Cabinet briefing, Merchant said ministers agreed to leave retail gasoline at EC$14.50 per gallon and diesel at EC$14.25 per gallon following a review of the country’s participation in an International Monetary Fund and Eastern Caribbean Currency Union fuel price study conducted in March. Antigua and Barbuda was one of two pilot countries selected for the regional assessment.
According to Merchant, the study examined fuel pricing mechanisms across the Eastern Caribbean Currency Union amid rising global fuel prices, increasing importation and operational costs, and regional discussions aimed at improving fuel price transparency.
He said Cabinet concluded that Antigua and Barbuda continues to offer some of the lowest retail fuel prices within the currency union, with motorists in several neighboring jurisdictions paying considerably more for both gasoline and diesel.
Merchant said the decision to hold prices at current levels represents a deliberate government policy to protect households, businesses and productive sectors from additional financial pressures created by volatility in international energy markets.
“While international fuel prices and importation costs have increased, the government has opted to absorb these pressures rather than pass them on to consumers,” Merchant told reporters.
He disclosed that the government’s outstanding bill to the West Indies Oil Company for absorbing those additional costs now stands at EC$6.5 million.
Merchant said Cabinet viewed the subsidy as a significant concession to consumers that helps preserve household purchasing power, supports business competitiveness and contributes to sustainable economic growth.
The fuel pricing announcement formed part of a broader review of the government’s second-quarter fiscal performance presented to Cabinet by senior Ministry of Finance officials. Merchant said the administration reaffirmed its commitment to prudent fiscal management, responsible stewardship of public finances and policies designed to maintain economic stability while financing investments in healthcare, education, infrastructure and other national priorities.
He added that continued improvements in government revenue, coupled with disciplined expenditure management, have enabled the administration to continue subsidizing fuel prices while avoiding additional costs for consumers.
This article was originally published by Antigua News Room. Read the original article here: Fuel Prices to Remain Unchanged in Antigua and Barbuda, Government Announces.