By Admin. Updated 8:22 p.m., Wednesday, May 27, 2026, Atlantic Standard Time (GMT-4).
Prime Minister Godwin Friday says his government’s temporary intervention in fuel pricing will allow Saint Vincent and the Grenadines to maintain some of the lowest fuel prices within the Organisation of Eastern Caribbean States (OECS), despite sustained increases on the international oil market.
Addressing the nation on Wednesday, May 27, Dr. Friday announced a series of measures aimed at stabilising fuel costs over the next 90 days, including reductions in excise tax and a 50 per cent reduction in the customs service charge on imported petroleum products.
The Prime Minister said global oil prices would have required gasoline prices locally to rise by approximately EC$5.60 per gallon and diesel prices by more than EC$5 per gallon if no intervention had been implemented.
“Without government action, gasoline would rise from what it is now of thirteen dollars and twenty-two cents a gallon to approximately eighteen dollars and eighty-two cents per gallon,” Dr. Friday said during the address.
Instead, under the temporary intervention, gasoline prices will move from EC$13.22 per gallon to EC$16.92 per gallon rather than EC$18.82. Diesel, currently priced at EC$12.56 per gallon, would have increased to approximately EC$17.71 per gallon but will instead be capped at EC$16.26 per gallon. Low sulphur diesel, which would have risen from EC$12.93 to nearly EC$17.85 per gallon, will now sell for EC$16.40 per gallon.
There is no indication as to when the new prices will take effect in the country.
Dr. Friday said the measures are intended to cushion the impact of rising global energy prices on households and businesses still recovering from recent national disasters, including Hurricane Beryl and the eruption of La Soufrière volcano.
“Our people have endured many shocks over the past few years,” he said. “The people of this country deserve more than a government that simply watches global inflation crush household budgets.”
According to the Prime Minister, the intervention means the government will absorb approximately EC$1.90 per gallon on gasoline and about EC$1.45 per gallon on diesel that would otherwise have been passed on directly to consumers.
He said the measures are expected to provide relief to motorists, minibus and taxi operators, farmers and fishers by reducing operating costs compared with what they would have been under full market pricing.
Dr. Friday also argued that the intervention could help slow increases in food and transportation costs by limiting the extent to which higher fuel prices are passed on to consumers.
“Without intervention, Saint Vincent and the Grenadines would have become one of the most expensive eastern Caribbean countries for fuel,” he said. “Now, because of the intervention, it keeps gasoline prices at sixteen dollars and ninety-two cents and diesel at sixteen dollars and twenty-six cents. We are among the lowest in the OECS region.”
While the measures were announced today, the prime minister said the government has, for months, worked to maintain price stability despite growing international pressures.
He said: “My fellow Vincentians, for months we have worked to maintain price stability despite growing international pressures, but the global market pressures have persisted longer than we had hoped and we must now respond carefully and effectively.”
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