Government continues to absord fuel costs to ease electricity and living expenses, PM says

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Gaston Browne

The government of Antigua and Barbuda is continuing to subsidise fuel and electricity costs as part of a broader effort to shield consumers from rising global prices, Prime Minister Gaston Browne said during his weekend radio programme.

Browne outlined the scale of the intervention, stating that “every dollar of diesel that is consumed in this country is subsidized at the rate of $1.67 per gallon,” adding that this support is being applied across the energy sector to limit the burden on households. 

He explained that the subsidy is not limited to motorists, noting that “even the electricity that you’re burning today—every gallon of fuel that is utilized as diesel, utilized to produce electricity, is actually subsidized by the government at $1.67,” a measure he said is helping to prevent higher utility bills. 

The Prime Minister framed the policy as part of ongoing cost-of-living support, arguing that without such intervention, consumers would already be facing steeper increases. “Ordinarily, if our government was not a caring government and we didn’t hold the prices steady, you’d have seen an increase in your electricity bills,” he said. 

Browne also pointed to the direct benefit to consumers at the pump, explaining that “when you go to the gas station and you buy 10 gallons of gas, that’s $16.70 the government put into your pockets to pay for it.” 

While defending the policy as necessary, he acknowledged the financial strain it places on the state and cautioned that it may not be sustainable under prolonged external pressures. He noted that global developments, including geopolitical tensions, could continue to influence fuel prices and place additional pressure on public finances. 

“We’re doing all we can,” Browne said, adding that although the government is working to keep prices stable, it cannot guarantee indefinite support if global costs continue to rise. 

The subsidy programme forms part of a wider package of measures introduced by the government to ease the cost of living, including tax relief initiatives and targeted social support, as officials seek to cushion the impact of international economic shocks on households.

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3 COMMENTS

  1. While the prime minister has not explicitly linked the subsidy to the 2026 elections, the decision to absorb costs is framed as a long-term strategy to provide stability, while most critics knows that such fiscal measures are only sustainable pre-election. The citizenry can expect the needle to move just after the elections.

  2. Needle to move, you mean leap.

    That’s what will happen here. He is drying up any little surplus the government may have had, and that will be cause for a massive hike
    In taxes across the board.

    Antiguan’s will suffer heavily later for these measures..This man is only making these foolish move because he called an early election, and he call that election because he knows the storm is coming because of many of his decisions in the past.

    And trust me, this Visa thing will hit very hard as well..that wave have not hit Antigua yet, because it’s still early in the year.
    And don’t talk about the tough summer months to come, when many Americans will be holding into their money to survive the effects of this war, and will hardly travel anywhere.
    GB knows Antiguan’s will be asking for his head, so for him to survive, he push an early election to try and stay in power, knowing fully well that it’s easier for him to survive before the storm than after it.

    He didn’t call this election for the benefit of Antiguan’s, this crook call it for the benefit of himself.

  3. the increases… and that includes our elected MPs. Unless their taking the money from their personal account(s).

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