Antigua and Barbuda Tourism Minister Concerned About The Impact The Rise In Gas Prices Could Have On The Economy

• The invasion of Ukraine by Russia has increased oil prices on the international market, which experts say will have a domino effect on economies and there will be no exception for Antigua and Barbuda.  
• Just as Antigua and Barbuda’s economy is starting to recover from the devastating fallout from the COVID-19 pandemic, the nation is about to be dealt another blow as a result of the rise in gas prices. This will spill over into the tourism sector further stymieing the already struggling sector thereby, reversing the gains made in the sector when airlines and other stakeholders are forced to increase their fares. 
• Over the weekend, Prime Minister Gaston Browne said his government can no longer maintain the subsidised EC $12.50 per gallon gas price across the country, saying that the prices of gasoline and diesel will be more than $15 per gallon and that residents could begin realising the increase at the pumps in a matter of days. 
• The Russia-Ukraine conflict will continue to have adverse effects on the local economy not only through increased oil prices but also through higher inflation and surges in prices of other commodities such as wheat and corn. This will inadvertently, lead to higher electricity and gas prices for both consumers and producers alike. These increases will continue to stifle growth in Antigua and Barbuda, as the country continues to recover from the effects of the ongoing pandemic.

 (Source: The Daily Observer)