BASSETERRE, St. Kitts, Nov 9, CMC – Prime Minister Dr. Terrance Drew has called for frank discussions on the impact of the imported energy products even as he said the St. Kitts and Nevis government will continue subsidising fuel to ease the impact of higher international prices on the twin island Federation.
Prime Minister Drew, speaking at his first “At The Roundtable” programme since returning to office following his recent health problems, said that the impact of higher diesel prices extends well beyond the pump.
He said farmers pay more to run tractors and other equipment, while businesses face higher costs to move goods and that those increases can reach families in the price of food and other essentials.
Prime Minister Drew urged anyone, specifically politicians, promising lower fuel prices to explain how they would deliver those reductions in a country that imports its diesel.
“We have given a lot of subsidy, but you can only give so much. The price of diesel internationally is high, and there’s very little any country can do about it.” he said, adding “which politician in St. Kitts and Nevis can carry down the price of diesel internationally?”
Prime Minister Drew said much of the inflation felt in St. Kitts and Nevis originates abroad pointing to the conflict in Europe and the Middle East, pressure on shipping routes and higher manufacturing and freight costs.
He told listeners that when a supplier charges more for a product or a shipping company charges more to deliver it local businesses face higher costs before the goods reach store shelves.
“Manufacturing costs gone up, shipping costs gone up, and the whole world is dealing with an inflation crisis. What does inflation mean? Things gone up,” Prime Minister said, noting that the government has responded by absorbing part of the cost of essentials and giving up revenue where tax relief can ease pressure on consumers.
He made reference to more than EC$80 million (One EC dollar=US$0.37 cents) in electricity subsidies reported by June 2026, adding that by covering the fuel variation cost, the government has helped limit the impact of higher fuel prices on household electricity bills.
“The government has listened, and we have done a lot to deal with the cost of living crisis,” Prime Minister Drew said.
Earlier this year, the government reduced the excise tax on gasoline from EC$1.95 to EC$0.98 per gallon and cut the Customs Service Charge on gasoline from six per cent to three percent.
The temporary relief package also excluded shipping surcharges from customs tax and duty calculations, reducing the tax cost attached to imported goods. Cabinet extended those measures through September 30.
During the programme, Prime Minister Drew reaffirmed the government’s commitment to subsidising gasoline, diesel and cooking gas adding that support for cooking gas has helped keep the 20-pound cylinder at EC$30 and the 100-pound cylinder at EC$140, easing a recurring expense for families.
But he acknowledged that households and businesses continue to face difficult choices as prices rise and that the government would continue to be frank about the pressures coming from abroad and use the measures available at home to help families manage the cost of keeping the lights on, getting to work and putting food on the table.
CMC/fj/ir/2026