Roosevelt Skerrit has announced plans to subsidize fuel prices in Dominica as the government seeks to shield consumers from rising global oil costs linked to the ongoing conflict between the United States and Iran.<\/p>\n
Speaking at a press conference on Wednesday, the Prime Minister said international crude oil prices had risen by more than 30% since the start of the conflict, contributing to sharp increases in local fuel prices.<\/p>\n
According to the government, gasoline prices in Dominica rose to EC$17.98 per gallon as of 7 May 2026, representing an increase of just over 20%, while diesel climbed to EC$20.53 per gallon.<\/p>\n
\u201cTo cushion the impact of rising fuel prices, the Government will provide a subsidy of $1.50 to $2.00 per gallon through reduced fuel taxes by the end of this month, should the prices keep increasing,\u201d Mr. Skerrit said.<\/p>\n
He said the measure was intended to ease pressure on households, public transport operators, fishermen, and businesses facing higher operating expenses as fuel prices continue to climb.<\/p>\n
However, the Prime Minister warned that the subsidies would place additional strain on public finances, with the government estimating a monthly revenue loss of more than half a million dollars.<\/p>\n
\u201cEvery dollar of subsidy is revenue foregone at a time when Government expenditure is rising due to higher operating costs for schools, hospitals, public services and ongoing recovery efforts following the April floods in the East and Northeast,\u201d he said.<\/p>\n
Mr. Skerrit added that diesel prices had increased by 48% since February and cautioned that continued volatility in global oil markets could create further financial pressure on the country\u2019s treasury.<\/p>\n
\u201cWith diesel prices up 48% since February and given the global forecasts for crude oil prices in 2026, fuel subsidies represent a growing burden on the Treasury that directly impacts the government\u2019s ability to fund health, education, infrastructure, and disaster recovery,\u201d he said.<\/p>\n
The Prime Minister also pointed to renewable energy as central to Dominica\u2019s long-term energy security strategy, arguing that reducing dependence on imported fossil fuels would help protect the country from future external shocks.<\/p>\n
He said the country\u2019s geothermal energy project was already contributing a growing share of electricity generation and would play a key role in reducing vulnerability to fluctuations in global fuel prices.<\/p>\n