Government Introduces Measures to Cushion the Impact of Rising Fuel Prices on Consumers
The Government of Dominica is implementing measures to keep fuel prices under control as the global price of oil continues to rise.
Taking into account the current global market prices, Government has decided to subsidize the cost of petroleum to reduce the impact on residents and avert a possible slow-down in economic growth prospects.
A Ministry of Trade price analysis for petroleum products projected the following prices for the upcoming adjustment cycle:
| Petroleum Products | Current Price | New Price | Change (+) |
|---|---|---|---|
| Gasoline | $14.89 p/gallon | $16.52 p/gallon | $1.92 p/gallon |
| Diesel | $13.91 p/gallon | $16.15 p/gallon | $2.67 p/gallon |
| Kerosene | $12.18 p/gallon | $14.14 p/gallon | $2.45 p/gallon |
Due to the proposed sharp increase in prices, Cabinet has taken a decision to remove
the customs service charge on gasoline and diesel with immediate effect.
In addition, Cabinet is granting subsidies equivalent to 60 cents per gallon on the importation of gasoline and 21 cents per gallon on the importation of diesel until the retail price of each product returns to below $15.00 per gallon.
As a result, the prices for the products with immediate effect are as follows:
- Gasoline EC$ 15.58 per gallon
- Diesel EC$ 15.58 per gallon
- Kerosene EC$ 14.14 per gallon
The implementation of the measures will result in revenue loss to the state. However, the Government of Dominica remains committed to actions, which will protect consumers from escalating world fuel prices, despite the adverse effects of the COVID19 pandemic on government’s revenue.
Consumers are urged to embrace lifestyle changes to better adapt as global oil prices continue to rise. Taxi operators and bus drivers are encouraged to use established procedures in dealing with the impact of the escalating prices on their businesses, and not levy increases in fares on commuters without the approval of the appropriate authority.
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