Government Continues Fuel Subsidies Despite Sharp Rise in APUA Fuel Costs

The government is continuing to subsidize fuel costs despite a sharp increase in the amount APUA pays for fuel, according to information disclosed during Friday’s post-Cabinet media briefing.

Director General of Communications Maurice Merchant said the daily cost of fuel purchased by APUA from the West Indies Oil Company has risen from approximately $460,000 in January to about $886,000 today.

Merchant said Cabinet discussed the issue and reaffirmed the government’s commitment to shielding consumers from the full impact of rising global fuel prices.

“The government indicates that it will continue to subsidize the fuel cost, the rising fuel cost,” Merchant said.

He noted that international developments continue to drive higher fuel prices, increasing the financial burden on utility providers and governments worldwide.

According to Merchant, the government has opted to absorb a significant portion of those costs rather than pass the full increase on to consumers.

The issue was among several matters discussed during Thursday’s Cabinet meeting as officials reviewed the impact of global economic conditions on Antigua and Barbuda.

The government has not indicated how long the subsidies will remain in place but said efforts to cushion consumers from rising energy costs will continue.