PM Pierre says this move is to ensure single mothers and other vulnerable people can afford the household necessity.

The Prime Minister’s remarks come after Opposition Leader Allen Chastanet slammed the Pierre Administration for the price of diesel and gasoline at the pumps.

“A single mother, with five children, will have to buy, a tank of 20-pound LBG for $70? Is that what we want? When gas was at $13.00, the subsidies on LPG were less than $10.00 - it was about $7 or $8. The subsidies now on LPG sometimes go as high as $30.00. You have to look at the holistic picture. We believe that single mothers and lower-income households [should not be] allowed to pay $70 for a tank of 20-pound cylinder cooking gas. We can’t,” Pierre asserted.

A UWP press release compared the retail price of fuel in Saint Lucia to the rest of the OECS. SNO determined that Saint Lucia’s petrol prices fall below those of Saint Vincent and the Grenadines, Montserrat, Grenada, and Anguilla - four of the eight countries in the Eastern Caribbean Currency Union.

Pierre says while the retail price of fuel may be cheaper in select OECS countries, one must also compare the rate of taxation and other aspects of their economies.

“You have to look at the pricing of petroleum products - LPG, kerosene, diesel, and gasoline. You also have to look at the taxes on these things. Saint Lucia has no tax on electricity, we have no levy on electricity, and we have no VAT or levy on water. You now have to compare to the other [OECS] countries, where there’s VAT on electricity and VAT on water. You now have to look at the VAT rate - it’s 17.5% in these countries, and in some places more. Saint Lucia has the lowest VAT in the region,” Pierre explained.

A release from the Office of the Prime Minister disclosed that the government spent at least XCD 8.10 million to keep subsidising the cost of LPG in the last quarter.