The Antigua and Barbuda government is continuing to absorb rising global fuel costs in an effort to shield consumers from higher electricity and transportation prices, even as neighbouring St. Vincent and the Grenadines passes those increases directly onto consumers.
Prime Minister Gaston Browne has described the policy as part of a broader cost-of-living strategy aimed at maintaining price stability across the economy. The government is subsidising fuel at approximately $1.67 per gallon — including fuel used for electricity generation — to prevent utility bills from climbing for local households.
Browne has also noted that Antigua reduced the level of consumption tax collected on fuel to keep pump prices stable despite rising global oil costs driven by geopolitical tensions and supply pressures. The measures have so far succeeded in maintaining relatively steady fuel prices locally.
Officials have cautioned, however, that the policy places strain on public finances and may not be sustainable indefinitely if global prices continue to rise.
The situation stands in sharp contrast to developments in St. Vincent and the Grenadines, where state-owned St. Vincent Electricity Services Limited (VINLEC) has announced an increase in its fuel surcharge. The surcharge will rise to $0.6650 per kWh for April 2026, up from $0.5490 the previous month — an increase of $0.116 per kWh.
VINLEC stated that the adjustment reflects higher international fuel costs and reduced generation from renewable energy sources. The company described the surcharge as a pass-through charge used solely to recover fuel costs, generating no profit. The utility also cited ongoing conflict in the Middle East as a contributing factor and urged customers to conserve energy to help offset higher bills.
Across the Caribbean, governments and utilities are grappling with the same external pressures — rising oil prices, supply disruptions, and geopolitical instability — but policy responses differ markedly. Antigua and Barbuda has opted to cushion consumers through subsidies and tax reductions, while St. Vincent and the Grenadines has transferred the burden directly to electricity consumers.
Economists have noted that while subsidies offer short-term relief, they carry long-term fiscal risks, particularly for small island economies heavily dependent on imported fuel. Browne has acknowledged as much, warning that sustained global volatility could eventually force a policy adjustment despite current efforts to hold prices steady.
