21st January 2016
Prime Minister the Hon. Gaston Browne has announced that Antiguans and Barbudans will commence paying less for gasoline and diesel with effect from February 1.
In making the announcement, Prime Minister Browne said that this action by his government is part of the process of giving economic power back to the people.
“With effect from February 1st, my Government will reduce the price of gasoline and diesel as follows: The price per gallon of gasoline will be reduced from $13.50 to $12.50, and the price per gallon of diesel will come down from $13.20 to $12.20,” PM Browne announced.
The country’s leader said that while his government is delivering the goods and services to the people of Antigua and Barbuda, struggling to repay debt while trying to bring the country back into solvency, it is not possible to reduce the consumption tax on gasoline and diesel any sooner.
“It simply was not possible to reduce the consumption tax on gasoline and diesel until my Government had stabilized the financial system and laid a foundation for the future. Consequently, an additional $20 million of windfall revenue was earned in consumption tax in 2015. Assuming no significant increase in the price of oil and no reduction in the level of consumption, the price changes that will take effect in February, will return $14.5 million of the $20 million windfall to the country’s motorists,” he said.
He concluded that the purchase of WIOC at no cost whatsoever to taxpayers, and the dividends the country will earn from the expanded profits of the company permit this relief on the cost of gasoline and diesel.
“I am delighted that, through sound policies and prudent fiscal management, my government is able to put more money into the pockets of consumers,” he stated.