Given major reductions in oil prices on the world market, the Government of St. Lucia has planned to make an adjustment to the price for oil locally, which will see a reduction in 2015.
Prime Minister Dr. Kenny Anthony told the media that the next price adjustment is due on Monday, January 12, 2015. Consumers he said can look forward to a reduction in the price for oil.
“I would expect on the last three months up until January, because of the reduction of oil on the world market you are going to see a significant reduction on the domestic market,” he said.
Oil prices hit a four-and-a half-year low in November, in the wake of the decision by the Organization of the Petroleum Exporting Countries (OPEC) producers’ cartel not to cut output.
Despite this reduction, during the month of October 2014, the price of gasoline and two LPG cylinders remained unchanged in St. Lucia. There were however slight decreases in the price of kerosene, diesel and bulk LPG.
Under the United Workers Party (UWP) government the price for oil were adjusted every month. However, this policy was changed by the St. Lucia Labour Party (SLP) government, to reflect adjustments in oil prices every three months.
“The result of course was, once prices rose people had to bear the shocks of a sudden increase. We do not think that was helpful to the economy,” he explained. Anthony said that is the reason why the three-month system was introduced. The prime minister asserted that his government stands by the decision to make these price adjustments every three months.
The UWP Leader Allen Chastenet has called on government to scrap the new policy and make adjustments to local oil prices, whenever there is a decrease on the global market.
Global demand for OPEC crude in 2015 is expected to fall to the lowest level in more than a decade and far below current output.