While the Government of Saint Lucia has implemented targeted interventions to manage the impact of the oil price shocks, it still loses millions in revenue as it aims to cushion the blow.
Cooking gas and petrol prices in Saint Lucia and the region have been significantly affected by these price increases since the Russian war on Ukraine in February of this year.
According to Director of Research and Policy in the Department of Finance, Economist Jemma Lafeuille, the price change of cooking gas has been subdued by an average of a 1.1 million-dollar subsidy every three weeks, which the government pays to fuel importers.
In a press conference last week, Prime Minister Hon. Philip J. Pierre, announced a targeted measure to prevent increases in price-controlled goods, a major concern for the population. Prime Minister Pierre stated that, “Included in the price of price-controlled goods was a 6% service charge. The government is losing further revenue by removing that 6% on these goods. That means the new imports would be 6% more if the government had not removed this service charge. So, even if the price of the import goes up, because the government has removed the 6%, anything you pay for it, it would have been 6% more if the government had not intervened.”
Maintenance of community wellness centres, schools and roads is mainly derived from taxes on imports.
For more information, visit:
www.facebook.com/SaintLuciaGovernment
