Saint Lucia absorbs EC$44.9M cost to keep fuel prices lower

The Saint Lucia government has foregone EC$39.2 million in fuel excise tax and spent EC$5.7 million on cooking-gas subsidies since April to shield consumers from rising energy costs.

29th of July 2026

Saint Lucia: The government has taken a hit of EC$44.9 million hit to its public finances since April 1, 2026, in order to keep the fuel and cooking-gas prices lower. The figure was revealed through a media release on Tuesday, July 28.

IThe EC$44.9 million includes EC$39.2 million in lower fuel excise tax revenue and EC$5.7 million spent on cooking-gas subsidies.

The Prime Minister and Minister of Finance Phillip J. Pierre said that the government took this measure in order to reduce the burden on consumers as international prices rise.

Pierre said that the financial impact was concerning but the government had decided to help in protecting people from higher fuel and cooking-gas costs.

“This is concerning, but we have taken these decisions to reduce the burden on the people of Saint Lucia,” said Prime Minister Pierre.

The statement also noted that despite the pressure on public finances, the government will keep fuel prices unchanged during the next pricing cycle.

The government said that it cannot control international oil prices or the events that cause them to rise. However, it can reduce the effect on consumers through fuel taxes and subsidies.

The government has collected less fuel excise tax to help keep the fuel prices lower than they otherwise would have been.

According to the statement, the government said that it covers half of the actual cost of some 20-pound and 22-pound cooking gas cylinders.

The reasons behind the financial pressure are the higher international oil prices linked to the conflict involving Iran and uncertainty around major oil-shipping routes.

Since the start of the 2026/2027 financial year, the government has given up EC$39.2 million in fuel excise tax revenue and spent EC$5.7 million on cooking-gas subsidies.

Together, the measures have had an EC$44.9 million impact on public finances.

PM Pierre also assured Saint Lucians that the sound fiscal management would allow the government to continue delivering on the commitments made in the 2026/2027 Budget.

The government said that the measures aim to reduce the effect of higher international oil prices on consumers while keeping the fuel and cooking-gas prices lower.