Opposition Leader Ralph Gonsalves is sounding the alarm on a severe, impending fuel crisis in St. Vincent and the Grenadines, warning citizens that gasoline prices could soon approach $20 per gallon. In a recent address, Gonsalves fiercely criticized the ruling government for what he described as complete paralysis and a lack of clear leadership in the face of skyrocketing global oil prices.
According to Gonsalves, the government is currently absorbing massive losses—which he refers to as being in the “malos”—due to the delayed adjustment of pump prices. He estimated that during March alone, the government owed close to an average of $3 per gallon to fuel companies like Rubis and Sol to maintain current prices, a figure he expects to rise dramatically.
If the average deficit hits $5 to $6 per gallon as global prices surge, Gonsalves calculates the government could face a financial burden of $4 million to $6 million per month just to cover the shortfall for road transport. Furthermore, he noted that the aviation sector is already feeling the squeeze, with Caribbean Airlines (CAL) adding surcharges of $15 to $20 per sector due to rising aviation fuel costs.
Instead of implementing a structured economic buffer, Gonsalves accused the administration of “kicking the can down the road” and hoping for the best. He heavily criticized a government proposal to implement a four-day work week as a method to ration fuel. Gonsalves condemned this rationing idea, arguing that telling citizens to leave private cars at home and cutting the work week would drastically reduce national productivity and slash workers’ take-home pay.
Drawing on his own administration’s track record, Gonsalves advised that the government must proactively decide whether to absorb the costs by reducing taxes or by actively subsidizing prices, particularly for the diesel-dependent public transport sector. He noted that his government successfully utilized these subsidies during the 2008 global economic depression and again in 2022. To maintain transparency, he urged the Ministry of Finance to designate a senior official to clearly explain the fuel price build-out and the reality of the crisis to the public, rather than keeping the numbers “up in the air”.
Gonsalves emphasized that the domestic crisis will only be compounded by international geopolitical turmoil. He cited global conflicts, including tensions involving Iran, potential blockades in the Strait of Hormuz, and Houthi activity in the Red Sea, as external factors that will keep oil and transportation costs highly elevated. Calling for immediate and decisive action, Gonsalves warned that the current administration’s habit of “managing and dispensing scarcity” will only accelerate the country’s economic deterioration