Government Notes Consumer Savings From LPG Subsidies

LPG cooking gas is a necessity for most Saint Lucian households. External factors like supply chain disruptions and instability in the international crude oil market can trigger increases in retail prices. However, high fuel prices have a disproportionate impact on households with limited resources. That is why the government continues to provide subsidies to prevent exorbitant retail price increases to keep the cost of cooking gas as low as possible for consumers. For the period April 15 to May 4, 2024, the government is committing $1.02 million to subsidize the 20-lb and 22-lb LPG cylinders. The cost of the subsidy for the 20-lb LPG cylinder is $19.99, and the 22-lb LPG cylinder is $21.99. Without the subsidy, the cost of the 20-lb LPG cylinder would have been $55.99 and the 22-lb LPG cylinder $61.59. The subsidies reduce the retail price of the 20-lb LPG cylinder to $36 and the 22-lb LPG cylinder to $39.60. That means every time you buy a 20-lb or 22-lb LPG cooking gas cylinder, the government covers 35.7% of your purchase! Despite consecutive increases in West Texas Intermediate (WTI) prices, the government continues to keep the prices of retail gasoline and diesel stable. WTI prices were...