Antigua Government Absorbs Fuel Prices Amid WIOC Increase

• The Government of Antigua and Barbuda has decided to absorb an increase in the cost of gasoline reported by the West Indies Oil Company (WIOC). According to WIOC, gasoline prices rose by five per cent, while diesel prices declined by three per cent. Despite these changes, the government has opted to maintain retail prices at the pump.
• In a statement, the government explained that its decision is based on the “refined pass-through mechanism for fuel prices, which takes into account revenue assurance, price stability, and maintenance of subsidies for certain petroleum products.”
• As a result, fuel prices in Antigua and Barbuda will remain as follows: gasoline at $14.50 per gallon, diesel at $14.25 per gallon, 20-pound LPG at $32.00 per bottle, 25-pound LPG at $40.00 per bottle, and 100-pound LPG at $155.00 per cylinder. Notably, the price of gasoline was raised just last month from $13.99 (all quoted in Eastern Caribbean Currency).
• Comparatively, the average regional prices for gasoline and diesel are currently $15.86 and $15.91 respectively. For LPG, the regional average for the 20-pound and 100-pound cylinders is $38.66 and $204.18, respectively.
• To ensure affordability for consumers, the Antiguan government continues to provide subsidies for LPG. These include a subsidy of $5.16 per bottle for 20-pound LPG, $6.45 per bottle for 25-pound LPG, and $17.64 per cylinder for 100-pound LPG.
• While these subsidies bode well for citizens, the maintenance of subsidies amidst rising prices will likely have the impact of increasing overall government expenditure which could likely result in a deterioration of the dual-islands fiscal balance if expenditures exceed revenues.

(Sources: Loops Caribbean News & NCBCM Research)