By Val Matthias. Updated 9:45 a.m., Friday, October 23, 2026, Atlantic Standard Time (GMT-4).
Gasoline prices are set to fall by more than one dollar a gallon from Monday, but the government says it is continuing to spend millions of dollars to shield households and businesses from the wider impact of volatile international energy prices.
Prime Minister and Minister of Finance Dr Godwin Friday announced the latest fuel-price changes during his ministerial address in the House of Assembly on Thursday, October 22
From Monday, October 26, gasoline will sell at EC$17.29 a gallon, a reduction of EC$1.02.
The price of diesel, however, will increase by four cents to EC$17.57, while low-sulfur diesel will rise by 33 cents to EC$17.73.
Friday attributed the latest adjustments to conditions in international oil markets.
But behind the changes at the pump is a larger government intervention aimed at limiting the impact of energy costs on consumers.
The Prime Minister said the government’s 50 per cent reduction in excise taxes on gasoline and diesel, introduced in May 2026, will remain in place.
The measure is intended to keep retail fuel prices lower than they would otherwise be.
Friday said the government was continuing to use the measure to cushion Vincentians from what he described as volatile international oil markets.
But the government’s relief programme extends beyond fuel.
The Prime Minister disclosed that government provided EC$798,591 in subsidy to VINLEC in October alone.
According to Dr. Friday, the intervention is absorbing costs that would otherwise have been reflected in the electricity fuel surcharge paid by consumers.
He said the government has spent EC$3.9 million since May through the subsidy.
Without that intervention, Friday said, the electricity fuel surcharge would have risen above 92 cents per kilowatt-hour.
That figure is significant because it illustrates the potential scale of the energy-cost pressure the government says it is attempting to prevent from reaching consumers directly.
The Prime Minister did not, in the statement supplied, indicate how much longer the current level of subsidy can be maintained or what the fiscal cost would be if international energy prices remain volatile.
The latest price changes also show that the effect of international market conditions is not uniform across fuel products.
While gasoline users will see a reduction of more than one dollar per gallon, diesel and low-sulfur diesel users will pay more from Monday October 26.
For motorists and businesses dependent on diesel, the increases could therefore offset some of the relief being delivered through the gasoline price reduction.
The government’s decision to maintain the 50 per cent excise-tax reduction means the state is continuing to forgo revenue in an effort to contain prices.
At the same time, it is providing direct financial support to VINLEC to limit the effect of fuel costs on electricity bills.
Friday said the government’s approach is intended to protect Vincentians from global economic shocks while the country moves towards a more sustainable energy system.
But the latest figures raise a broader question about the cost and sustainability of that protection.
The Prime Minister’s announcement does not provide a projection for the total cost of the programme through the remainder of the year, nor does it state when the excise-tax reduction might end.
Friday said the government remains committed to using “every tool available” to shield citizens from international economic shocks.
END
About the Author: This story was written and submitted by freelance journalist Mr. Val Matthias, a trained communicator with more than two decades in the media sector. He holds a Bachelor of Arts in Media and Communication (UWI Mona), a Master of Science in Tourism and Hospitality Management (UWI Cave Hill), a Certificate in Digital Marketing, and has years of broadcast journalism experience rising to ranks of a programme manager. All supporting materials for this story have been presented, vetted, and verified. Mr Matthias can be reached at valmatthias188@gmail.com
