Prime Minister Says Government Absorbing Costs to Keep Fuel Prices Stable for Now

Prime Minister Gaston Browne says the government has been deliberately absorbing some of the impact of rising global fuel prices in order to shield consumers in Antigua and Barbuda from further increases in the cost of living.

Chief Executive Officer of the West Indies Oil Company (WIOC), Gregory Georges, says Antigua and Barbuda is already feeling the effects of rising global oil prices, confirming to Antigua.news that a recent fuel shipment arrived at significantly higher costs.

According to Georges, the sharpest increases have been recorded in diesel and jet fuel, reflecting the impact of the latest surge in the international energy market.

Speaking during his radio programme over the weekend, Browne explained that fuel price increases have a ripple effect across the economy, raising the cost of transportation, groceries, hardware supplies and other everyday goods in a country that relies heavily on imports.

The Prime Minister pointed out that fuel prices in Antigua and Barbuda remain competitive compared with other members of the Eastern Caribbean Currency Union (ECCU), noting that the government has maintained gasoline at $14.25 per imperial gallon despite fluctuations in global markets.

He said that while some critics have accused the government of overcharging consumers, regional comparisons show that several other territories have higher fuel and liquefied petroleum gas (LPG) prices.

According to the figures cited, some islands such as Anguilla and Saint Lucia record significantly higher LPG prices for both 20-pound and 100-pound cylinders, while Antigua and Barbuda remains among the lower-priced jurisdictions within the subregion.

Browne said the government has achieved this by reducing the amount it collects in consumption tax on fuel in order to maintain price stability.

“We have decided to take less taxes to maintain stability in the pricing,” he said. “You know exactly what you would have paid for fuel over the last three years. We haven’t changed the prices even though global prices have been fluctuating.”

He added that during periods when international fuel prices spiked — particularly during the war in Ukraine, the government absorbed losses rather than passing the full increase on to consumers.

Browne cautioned, however, that if global conflicts or supply disruptions continue to push prices upward, the government may eventually have to adjust fuel prices.

“I hope it doesn’t get to that stage, but up to this point the government is committed to continue subsidizing the prices by reducing the amount we collect in consumption tax,” he said.

The Prime Minister stressed that the approach is intended to provide predictability and stability for consumers and businesses in Antigua and Barbuda while the country navigates ongoing global economic pressures.