CASTRIES, St. Lucia, CMC – Prime Minister Phillip J Pierre has warned that if oil prices on the global market, as some experts predict, reach US$200 per barrel as a result of the ongoing conflict in the Middle East involving the United States, Israel, and Iran, the effect is going to be “horrendous” for St. Lucia.
Pierre, who said he is in the process of preparing his budget policy statement to be read in Parliament on April 21, told reporters that he is also aware of the “rollercoaster in the global economy, as far as the price of fuel is concerned.
“I have great concern about it. Some experts predict that oil on the world market may reach US$200 a barrel. If that happens, the lag effect on us will not come as quickly as the price goes up, and it will be very severe.
“Whether we have any control over that, we don’t. The sad thing is we do not, but if what the experts are predicting, some experts, that if oil on the world market goes up $200 a barrel, it’ll have a serious effect on us.”
Pierre said that his administration is continuing to work to cushion the impact of any price increase in global oil prices, adding, “The budget is not being presented with that eventuality, but we are going to put some measures in there to cushion the effect, to try to cushion as far as possible.
“But I can assure the people of St. Lucia that the government of St. Lucia, as we’ve always cared for the people, we will continue to see what we can do to cushion the effect. But hopefully, good sense will prevail, and the price of oil on the world market will not reach these heights,” Pierre said.
Late last month, Prime Minister Pierre presented an EC$2.189 billion (One EC dollar = 0.37 cents) budget to Parliament, confident that sound policies, strong fiscal management, and decisive action would allow his government to “competently navigate” the current global environment.
Pierre, presenting the Estimates of Revenue and Expenditure ahead of his policy statement, told legislators that, notwithstanding the uncertainty of the geopolitical environment, he remains “optimistic that this year will be one of growth.
“This year’s budget estimates are based on projections for continued economic growth, supported by improvements in performance in the tourism sector, increased public and private sector construction activity… and the expansion in domestic economic activity through growth in the orange and youth economy.”
Pierre said that, in the 2026-2027 budget proposals, the government will endeavor to strengthen the country’s resilience in preparation for the negative effects of climate change and economic shocks.
“Every effort will be made to improve overall productivity in the efficiency and delivery of government services. The private sector will be expected to assist the government’s efforts to improve St. Lucia’s ease of doing business with it.”
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