Imbert announces fuel price adjustments

FINANCE Minister Colm Imbert announced that a partial increase in fuel prices will take effect from April 19. He made the announcement in the House of Representatives on Friday.

Imbert said the adjustments were being made on the basis of factors such as the effect of the Russian invasion of Ukraine on international oil prices.

But he added, "The Government is cognisant of the effect of an increase in the price of fuel on consumers, notwithstanding the fact that a fuel subsidy is a regressive measure."

Imbert said, "The Government is of the view that the liability for any fuel price adjustment should be shared more or less equally. The public should be asked to pay half the cost of the increased market prices of fuel, while the Government absorbs the other half of the increased cost."

On this basis, Imbert said Cabinet decided on Thursday there should be a partial adjustment of the prices of motor fuels, "not to the full market prices, but sufficient to allow an equal distribution of the cost."

The prices of premium gasoline and super gasoline will be adjusted by $1 per litre to $6.75 and $5.97 per litre respectively, while the price of diesel will be adjusted by $0.50 cents per litre to $3.91 per litre.

The cost of LPG will remain fixed at $21 for a 20-pound cylinder of cooking gas for domestic customers. The price of kerosene will be adjusted to $3.50 per litre which is little over half the true market price

The current prices of premium gasoline, super gasoline, kerosene and diesel are $5.75, $4.97, $1.50 and $3.41 per litre respectively.