GAS HIKE AT PUMPS

It is now official: Government will be reducing the level at which it subsidizes petroleum here.

Early Wednesday, January 25, motorists faced increased prices at the pumps.

Gasoline prices increased from $8 per gallon to $9.50 per gallon while Diesel increased from $7.25 per gallon to $9.25 per gallon.{{more}}

The hike in petroleum prices came two days after Prime Minister Dr. Ralph Gonsalves announced in his Budget presentation that the Government is unable to continue subsidizing fuel at a huge loss.

In 2005 the cost of the Government subsidy amounted to over $6 million.

Dr. Gonsalves said, after increasing fuel prices at the pump in August 2004 and January 2005, the price was maintained, notwithstanding the large increases in the cost of fuel.

The Prime Minister noted that St.Vincent and the Grenadines has the lowest prices in the OECS for gasoline and diesel.

Announcing the increases, Prime Minister Dr. Gonsalves said the maximum wholesale price for Gasoline will be $8.90 while Diesel will be $8.74. Kerosene will be $7.74 at wholesale and $8.37 at the Maximum Retail price per gallon.

“As is customary, we will keep these prices under constant review and will make necessary adjustments as the market situation allows,” said Prime Minister Dr. Gonsalves.