ROSEAU, Dominica, CMC – The Dominica government, on Wednesday, reaffirmed its commitment to protecting consumers from the full impact of global fuel price increases caused by the ongoing war in the Middle East involving the United States, Israel, and Iran.
As of early May, global oil prices have experienced a sharp, volatile decline to below US$100 per barrel for both Brent and WTI benchmarks, driven by hopes of a diplomatic resolution to the conflict. Prices had previously spiked above US$115
Prime Minister Roosevelt Skerrit told a news conference that when the conflict began on February 28, gasoline was being retailed here at EC$14.96 (one EC dollar = 0.37 cents) per gallon, and diesel was EC$13.84 per gallon.
But he said that since then, global crude oil prices have surged by over 30 percent, pushing local consumer prices to EC$17.98 per gallon for gasoline and EC$20.53 per gallon for diesel.
Skerrit said that to cushion the impact of rising fuel prices, the government will provide a subsidy of EC$1.50 to EC$2 per gallon through reduced fuel taxes by the end of this month, should prices keep increasing.
“While these subsidies, at a cost of over half a million dollars monthly, will provide critical relief to households, bus operators, fishermen, and businesses, they also carry significant implications for the government’s revenue/expenditure performance.
“Every dollar of subsidy is revenue foregone at a time when government’s 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,” Skerrit told the news conference.
He said diesel prices have risen 48 percent since February. Given global forecasts for crude oil prices in 2026, fuel subsidies represent a growing burden on the Treasury, directly affecting the government’s ability to fund health, education, infrastructure, and disaster recovery.
“Government will continue to review fuel pricing monthly to balance consumer protection with responsible fiscal management, Skerrit said, adding that in the long term, Dominica’s energy security depends on accelerating our transition to renewable energy.
He said the introduction of geothermal energy, now contributing a growing share of the Dominica Electricity Company’s (DOMLEC) electricity supply mix, is a critical step to reduce exposure to imported fuel price increases.
“The government thanks the public for its understanding as we navigate these extraordinary global conditions together,” he added.
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