PR – Consistent with its commitment in the 2023 Budget to mitigate the high cost of living on the population, Government has reintroduced the Petrol Tax, with effect from January 18, at a lower rate of $3.50 instead of the $5.50 rate previously charged. As a result of this policy, Government will forego an estimated $18.8 million in revenue this year.
The Petrol Tax was temporarily removed in September of last year as an immediate cost of living relief measure. As a direct result, Grenada enjoyed the lowest retail price of fuel across the Organisation of Eastern Caribbean States (OECS) over the last four months. The reinstatement of the Petrol Tax at a lower rate comes at the end of this temporary measure, and prices at the pump are still expected to remain below the average for the OECS.
Additionally, effective January 18, Government will harmonise the prices of gasoline, diesel, and kerosene on the mainland and in Carriacou to ensure that residents on both locations pay similar prices for these products.
Government continues to actively monitor fuel costs and wishes to reiterate its commitment that should the price per barrel of oil result in the price per gallon of petrol exceeding $17.00, it will consider additional policy measures, including reinstating a cap on fuel prices, to mitigate the impact on the population.