Prime Minister Roosevelt Skerrit has announced plans to subsidize fuel prices to protect consumers from the continued rise in global oil prices linked to the ongoing US-Iran conflict.
Addressing a press conference on Wednesday, the Prime Minister noted that since the start of the conflict, global crude oil prices have surged over 30%, pushing local consumer prices to $17.98 per gallon for gasoline (an increase of 20.2%) and $20.53 per gallon for diesel as of May 7, 2026.
“To cushion the impact of rising fuel prices, Government will provide a subsidy of $1.50 – $2.00 per gallon through reduced fuel taxes by the end of this month (May 2026) should the prices keep increasing,” the Prime Minister said.
He said the measure is intended to provide relief to households, public transport operators, fishermen and businesses already facing higher operating costs but cautioned that the subsidies would come at a high financial cost, estimated at more than half a million dollars per month in lost revenue.
“Every dollar of subsidy is revenue foregone at a time when Government expenditure is rising due to higher operating costs for schools, hospitals, public services and ongoing recovery efforts following the April floods in the East and Northeast,” he said.
“With diesel prices up 48% since February and given the global forecasts for crude oil prices in 2026, fuel subsidies represent a growing burden on the Treasury that directly impacts Government’s ability to fund health, education, infrastructure and disaster recovery,” he added.
Prime Minister Skerrit noted that Dominica’s long-term energy security depends on reducing the country’s reliance on imported fossil fuels through renewable energy development. He pointed to the geothermal energy project, which is now supplying an increasing share of electricity generation, as a critical investment that will help shield Dominica from future global fuel price shocks.
