Consumers in Dominica are set to receive relief at the pump as the government steps in to mitigate the impact of skyrocketing global fuel costs. Prime Minister Roosevelt Skerrit announced that the government will apply a subsidy of $1.50 to $2.00 per gallon by reducing fuel taxes. This targeted relief is expected to take effect by the end of May, coinciding with the next cycle for price review.
The intervention comes in response to global crude oil prices surging by over 30 percent, which has directly driven up local consumer prices. Additionally, diesel prices have spiked 48 percent since February. Prior to this relief, fuel costs as of May 7, 2026, stood at $17.98 per gallon for gasoline, $19.23 for High Sulfur Diesel (HSD), $20.53 for Ultra-Low Sulfur Diesel (ULSD), and $18.21 for kerosene.
According to Prime Minister Skerrit, this subsidy will provide crucial financial relief to households, businesses, bus operators, and fishermen. However, he also noted that the measure represents a substantial fiscal commitment for the nation. The fuel subsidies will cost the government over half a million dollars every month. Skerrit emphasized that every dollar subsidized is forgone revenue at a critical time when state expenditure is already increasing. These rising expenses are due to higher operating costs for public services, hospitals, schools, and ongoing recovery efforts following the April floods that impacted the east and northeast regions.
The Prime Minister acknowledged that these subsidies represent a “growing burden on the Treasury of Dominica,” directly impacting the state’s capacity to fund essential infrastructure, education, health, and disaster recovery projects. To maintain a balance between responsible fiscal management and consumer protection, the government plans to continue reviewing fuel prices on a monthly basis.