The government of St. Vincent and the Grenadines has announced a series of targeted interventions aimed at reducing the impact of rising global fuel, electricity, cooking gas, and shipping costs on households and businesses.
Prime Minister Dr. Godwin Friday outlined the measures during a national address on Wednesday, describing the package as a short-term emergency response to worsening international economic pressures linked to global conflicts and rising oil prices.
One major area of intervention focuses on electricity costs. The government said it will remove the Customs Service Charge and Excise Taxes on diesel imported for electricity generation over the next three months.
Officials estimate the move will result in approximately EC$1.65 million in forgone revenue, with the savings expected to be passed directly to consumers.
VINLEC will also be required to participate in the relief effort through a matching discount arrangement tied to the utility’s fuel surcharge. Under the plan, if the surcharge exceeds EC$0.71 per kilowatt hour, VINLEC will provide a 50 percent matching discount. If the surcharge rises above EC$0.77 per kilowatt hour, the company will provide a full matching contribution.
The Prime Minister said the intervention is intended to prevent electricity bills from becoming unmanageable for families and small businesses already struggling with rising costs.
The government also announced the complete removal of the Customs Service Charge on Liquefied Petroleum Gas (LPG), commonly used for household cooking.
According to officials, international LPG prices have increased by approximately 27 percent since January, raising concerns that local cooking gas prices would soon rise significantly.
The government says the tax removal will absorb roughly EC$504,368 in revenue over the next ninety days and help stabilize cooking gas prices for households, restaurants, bakeries, and other food businesses.
Meanwhile, authorities are also moving to address rising import and shipping costs, which officials say have become a major contributor to inflation.
Prime Minister Friday noted that the cost of shipping a standard 20-foot container from the United States to Kingstown has risen sharply this year, moving from approximately EC$2,200–EC$3,000 to as high as EC$4,800.
To reduce the impact on consumers, the government announced that shipping surcharges, including fuel and congestion fees, will be removed from customs tax calculations. Freight rates used for taxation purposes will also be benchmarked to January 2026 levels, even if current shipping prices remain elevated.
The government says the measures are designed to reduce imported inflation, lower the landing cost of goods, and help businesses avoid passing rising international costs directly onto consumers.
Prime Minister Friday described the interventions as part of a broader effort to protect households while maintaining economic stability during a period of global uncertainty.