Friday, April 15, 2011

Government cuts price of cooking gas for 20-lb cylinder


ST. GEORGE’S, GRENADA, Friday, April 15, 2011: Having regard for the financial challenges facing the Grenadian people in the face of the steady rise in energy prices; Government has stepped in to cushion the effect of rising energy prices in two ways.

First, the price of a 20 pound cylinder of cooking gas will fall from $54.62 to $47.96 from Monday, April 18, 2011.  If Government did nothing, the price of a 20 pound cylinder would have risen to $56.46.  Based on average monthly sales, this action will cost Government about $200,000 per month.

Second, Government has decided to reduce the tax collected on each gallon of gasoline sold by 50 cents, the maximum allowed under the law at any price change.  If Government had done nothing, the price of gasoline would have risen from $14.68 to $15.62 per gallon.  With this decision, the price of petrol will now be $15.12.  This decision also means that Government will lose approximately $500,000 in revenue from petrol tax for the next month (April 18 – May 17, 2011).

It is important for the public to know that contrary to popular opinion, Government does not benefit from high oil prices.  On the contrary, Government often loses revenue because it is forced to cut the tax collected on each gallon of fuel sold.  This is precisely the situation at this time.
               
It is even more important for the public to understand that notwithstanding these efforts by Government, petroleum prices are likely to remain high and rise even further over the next few months.  Since Grenada imports nearly all of its fuel, there is limit to how much Government can do to cushion the effect of these high prices.  As a consequence, the public must make every effort to conserve energy.

In light of Government intervention, the general public is hereby informed that, effective, Monday 18th, April 2011 the retail prices of petroleum products (Gasoline, Diesel, Kerosene and LPG (Cooking Gas) will be as follows:

GRENADA:
Products                                 Old Price                                 New Price
Gasoline                                  $14.68/IG                               $15.12/IG
Diesel                                      $14.83/IG                               $15.43/IG
Kerosene                                 $11.71/IG                               $12.85/IG

L.P.G (Cooking Gas):
20 lbs Cylinder              $54.52                                                              $47.96
100 lbs Cylinder            $267.17                                                $276.89
Bulk                               $2.73/lb                                              $2.83/lb

CARRIACOU:
Products                                 Old Price                                New Price
Gasoline                                  $14.84/IG                               $15.78/IG
Diesel                                      $14.99/IG                               $15.59/IG
Kerosene                                 $12.39/IG                               $13.02/IG

L.P.G (Cooking Gas)
20 lbs Cylinder                        $63.52                                        $56.96                    
100 lbs Cylinder                      $290.17                                       $299.89
Bulk                                         $2.73/lb                                      $2.83/lb
                                               
PETITE MARTINIQUE:
Products                                 Old Price                                New Price
Gasoline                                  $11.84/IG                                   $12.78/IG
Diesel                                      $11.98/IG                                  $12.59/IG  
Kerosene                                 $12.39/IG                                    $13.01/IG

All consumers are encouraged to act wisely by conserving and using energy efficiently.  Furthermore, consumers are encouraged to immediately notify the Price Control/Consumer Affairs Unit in the Ministry of Finance of any instance of overpricing at telephone number 440-1369.

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