A potential revival of a PetroCaribe-style agreement is seen as a way to lower fuel costs by securing more generous oil terms through a direct regional partnership with Venezuela.
Opposition Leader Ralph Gonsalves says that St. Vincent already possesses the PetroCaribe SVG storage facility at Lowmans, which allows the country to receive, store, and distribute refined products locally.
This infrastructure enables PetroCaribe SVG to sell fuel directly to the national utility provider, Vinlec, bypassing some of the costs associated with international commercial suppliers like SOL.
He said there is a proposal to open discussions between CARICOM or the OECS and the Venezuelan government to establish this revived agreement, potentially acting as a buffer against the current global spike in Brent crude prices, which recently surpassed $100 per barrel.
Gonsalves said because the fuel surcharge on electricity bills is the primary mechanism for passing on fuel price fluctuations to consumers, securing lower-cost fuel through a regional agreement would directly lead to a reduction in that surcharge.
Gonsalves also mentioned exploring a similar regional mechanism to access oil from Guyana, though he notes that those terms may not be as generous as those historically offered by Venezuela.