Drew warns fuel subsidies have limits but offers no new relief on diesel

BASSETERRE, St Kitts. Prime Minister Dr Terrance Drew has said the government will keep subsidising fuel, but warned there is a limit to how much it can absorb, as he challenged politicians promising cheaper fuel to explain how they would deliver it.

Speaking at his Roundtable on November 5, in remarks released by the Office of the Prime Minister on Monday, Dr Drew blamed higher prices largely on events abroad, citing conflict in Europe and the Middle East, pressure on shipping routes and rising manufacturing and freight costs.

"We have given a lot of subsidy, but you can only give so much," Dr Drew said.

He asked which politician in the federation could bring down the international price of diesel, and called for a frank public discussion on what drives the cost of the imported fuel.

No new measures

No new relief was announced. The statement gave no current diesel price, no figure for what continued fuel subsidies are costing the Treasury and no indication of how long they will last.

Instead it restated earlier measures: electricity subsidies that had passed EC$80 million by June 2026, a cut in the excise tax on gasoline from EC$1.95 to EC$0.98 a gallon, a cut in the customs service charge on gasoline from 6 per cent to 3 per cent, and cooking gas held at EC$30 for a 20lb cylinder and EC$140 for a 100lb cylinder.

The gasoline tax cuts began as temporary measures on April 30. Cabinet Secretary Dr Marcus Natta announced in July that they would run from August 1 to September 30. Monday's statement, issued almost six weeks after that deadline, did not say whether the relief is still in force. The tax cuts applied to gasoline, and the announcements made no mention of diesel.

Dr Drew said the government had listened and had done a great deal to tackle the cost of living. His remarks come as he prepares to meet supermarket operators over concerns about price gouging.