Antigua and Barbuda may raise fuel prices as government faces EC$40 million burden

Antigua & Barbuda may raise fuel prices as Government absorbs EC$40 million
EXCERPT: Antigua & Barbuda may raise fuel prices as the government faces an estimated EC$40 million burden from keeping fuel prices unchanged.

Antigua & Barbuda: Prime Minister Gaston Browne has warned during the Browne and Browne show that Antigua & Barbuda could increase fuel prices. The government has been covering the higher cost of the fuel prices unchanged. As a result, it has lost more than EC$30 million in revenue and owes about EC$10 million to the West Indies Oil Company.

Browne said that the government might not be able to maintain the current fuel prices. He said that the efforts to prevent international fuel costs being passed directly on to the consumers has resulted in financial pressure.

Gasoline is currently being sold at EC$14.50 per imperial gallon, while diesel is being sold at EC$14.25. The Cabinet kept the fuel prices unchanged after it reviewed a fuel price study by the International Monetary Fund and the Eastern Caribbean Currency Union earlier this year.

PM Browne said that in order to maintain the prices the government has given up more than EC$30 million in revenue over six months. He added that the government also owes about EC$10 million to the West Indies Oil Company because if the decision to keep the fuel prices unchanged,

PM Browne said that the total cost to the government could be around EC$40 million, which he described as a significant amount.

The Prime Minister also said that the pressure on fuel prices is due to high international petroleum costs and the ongoing conflict involving Iran. He said that the government had expected the situation to improve several months ago, but the conflict remains unresolved.

Despite the financial pressure, Antigua & Barbuda continues to have the lowest gasoline and diesel prices among the eight Eastern Caribbean Currency Union (ECCU) countries. Eastern Caribbean Central Bank data for July showed that gasoline was EC$14.50 per imperial gallon and diesel was EC$14.25. The ECCU average prices were EC$17.66 for gasoline and $18.16 for diesel.

The government previously said that keeping the fuel prices at their current levels helps in protecting consumers from higher international fuel costs. In July, the Cabinet decided to keep the current prices unchanged after reviewing the regional fuel-pricing study.

However, Browne said that the government may have to review the decision if the financial losses continue. He said that a public discussion will be required before the government could decide to increase fuel prices. 

No date has been announced for a possible increase, and Browne has not said how much gasoline or diesel could cost if prices are raised.