The new retail prices represent a 5.7% or 65 cents increase on gasoline above the previous level of $11.32, a 3.1% or 33 cents increase on diesel and a 5% or 45 cents increase in the case of kerosene.
The government has had to absorb $0.48 on the now $11.97 fuel price per gallon.
â€œIt is important for us to recognize that we have to conserve energy. Our own attitude towards consumption must be regulated and revisited.
â€œIt is a difficult thing for the government to do in terms of absorbing this 48 cents per gallon, but we are doing so in recognition of the situation confronting the country now,ï¿½? Mr. Skerrit explained.
The Dominican leader explained that absorbing price increases is putting a strain on government resources.
â€œItâ€™s never advisable to absorb the increases because it places a strain on the revenue of the country, and because once you place a strain on the revenue; you place a strain on the goods and services,ï¿½? Prime Minister Skerrit said.
The price reduction was made by a reduction on the Excise tax collectible on petroleum products.
With the strict application of the price build up formula, the increases in world prices would have resulted in new retail prices of gasoline, diesel and kerosene of $12.45, $11.01 and $9.87 per gallon, respectively, making it the highest retail prices ever attained since the rise in oil prices following the wars in Iraq.
Although PM Skerrit said that there has been an overall improvement of the Stateâ€™s finances, the country should remain in a position to respond to any emergency situation.
â€œWe need to be in a position to respond to an emergency when it arises, so by absorbing this you placing a greater strain on the State to perform its functions in the manner in which the people of Dominica will like to see us perform,ï¿½? he said.
by Malaika Laurent
Caribbean Net News Dominica Correspondent
Email: [email protected]