Grenada government holds back on fuel increases

ST GEORGE'S, Grenada, November 19, 2009 - The Grenada government has postponed a scheduled hike in fuel prices.

Petroleum prices are adjusted in Grenada on the 18th day of every month to reflect changes in the global market and yesterday, petrol was set to increase from EC$11.40 (US$4.36) to EC$11.99 (US$4.58) per gallon; diesel from EC$11.01 (US$4.21) to EC$11.70 (US$4.47); and cooking gas from EC$38.50 (US$14.72) to EC$40.74 (US$15.58).

But the government said it would give citizens a break this time around because of the hardship and inconvenience which motorists, bus operators and the general public were experiencing as a result of damage caused to one of the island's main roads - Western Main Road - which has left it impassable.

"Further, having regard for the appeal made by Government to the bus associations to hold prices constant for the next two weeks, the Government has decided not to proceed with the scheduled increase in petroleum prices at this time," a statement from the Ministry of Finance said.

"Subject to the reopening of the Western Main Road, it is Government's intention to return to the normal monthly adjustment next month."

The Ministry said it had consulted with the oil companies and retailers before postponing the increases.

It added that the Government would work with the oil companies to ensure their loss of margin as a result of the decision is recovered within three months