Prime Minister, Dr Ralph Gonsalves made the announcement on Friday 6th June, at a press conference. Dr Gonsalves said that an increase in the fuel surcharge, up from 55 cents per unit in April and May to 63 cents, was inevitable due to increasing world oil prices. “Nothing can be done; it is something that needs to be implemented to ease the problem,” PM Gonsalves stated.
Oil prices continued to escalate, reaching 139 USD per barrel last week, this according to the Prime Minister. "It’s a real problem; it’s a serious challenge and has the potential to shake economies of the world,” Dr Gonsalves explained.

Over the last 5-year period, this country’s lone electricity company VINLEC was reported to have spent EC$172 M in fuel used in electricity generation.
For the period ending May this year, VINLEC has spent in excess of $25M, already half of last year’s figure of $50M.

The PM also announced that he would be “seeking to cushion challenges” in the form of a subsidy for persons who consume 100 units and less each month.
Dr Gonsalves said that his government would be providing a 6 cent subsidy for such persons, meaning that persons coming under this bracket will see their fuel surcharge increase by only 4 cents.

As a ‘bottom line,’ Dr. Gonsalves encouraged people to conserve. “At the end of the day, it comes back to the consumer,” Dr Gonsalves said. He cited private investments in alternative methods of electricity generation, and spoke of incentives such as tax write offs for such persons. The Prime Minister also spoke of his government and VINLEC’s continued exploration of cheaper alternatives, primarily wind and geo-thermal energy.

He also mentioned the existence of Petro Caribe which, according to the PM, has played a significant role in keeping prices relatively lower.

Dr Gonsalves noted that since the implementation of the agreement, fuel coming in at the new plant in Lowmans Bay was up to $1.50 cheaper than that at Cane Hall and Bequia. PM Gonsalves noted that the latest increase in the fuel surcharge could have been as high as 67 cents, had it not been for the arrangement.