St Lucia Attempts Economic Lubrication with a Double Dose of Reduced Gasoline Prices

The news of a further reduction in the price of gasoline comes with little fanfare and a departure from the norm.

On January 12, 2015, the government of Saint Lucia announced the regulatory three month price mechanism for gasoline price adjustment from $15.85 to $13.65, while informing the public that the next adjustment would be April 5, 2015.

On February 9, 2015, to the surprise of many, the unpopular government of the Saint Lucia Labour Party has had reason to modify their incoherent economic and energy policy, for the time being. The price of unleaded gasoline will decline from $13.65 to $10.65 a gallon, a saving of $3.

The table below summarizes the price adjustments:

St Lucia Attempts Economic Lubrication with a Double Dose of Reduced Gasoline Prices

Very few politicians can survive declining political support and in particular from the motoring public, who were facing an imminent increases in bus fares. And no country can survive a dead economy, with few friends overseas unable to help in time of need. The prime minister and minister for finance, Dr Kenny Anthony, had to give in, regardless of his explanation.

However, this price reduction, if intended to be a Valentine’s gift, will not be enough to cushion the hearts of Saint Lucians. There will be plenty to analyze in the months leading to the Budget presentation, as government’s mismatched goals in the final hours of the fourth fiscal quarter fall short.

Moreover, the basic element to unmask is that prime minister and minister for finance, Dr Kenny Anthony was caught in a trap of his own making and, as of February 9, 2015, confirmed the following:

▪           The prime minister and minister for finance, Dr Kenny Anthony, is making a course correction relative to the true calculation on the law of averages, taking into account, economic sentiments and the reality of the market is too great a cost to bear and now seeks to medicate with a double dose of price adjustment; (Commentary: Economic sentiments and the reality of the market)

▪           The prime minister and minister for finance, Dr Kenny Anthony, has come to his senses in relation to the Saint Lucia Labour Party government’s out of touch policy, and has taken a more humane approach to the sufferings of Saint Lucians. Having realized that his government’s policies and economic programs cannot deliver better days to the wider population and the dilemma to St Lucia’s structural rise again is a terrifying experience that perhaps keeps him awake much too often;

▪           The prime minister and minister for finance, Dr Kenny Anthony, has come to understand the political implication of the gasoline price adjustment and the Saint Lucia Labour Party’s unpopularity at this time, leading into the general election with the dormant economic reality in Saint Lucia and unable to get a hand-out from his socialist friends.

▪           The prime minister and minister for finance, Dr Kenny Anthony, has recognized yet another missed opportunity to restore credibility on strategic pillars to sustainable growth, and as such,

▪           The prime minister and minister for finance, Dr Kenny Anthony, knowing he has messed up big time on his Saint Lucia Labour Party government’s energy policy, is only know recognizing that his once sharp intelligence has suffered delayed thought processing, and the reality that his time is limited.

Here comes the proverbial as expressed in the government press release of February 9, 2015, by the Office of the Prime Minister (Government adopts flexible approach to oil pricing system):

“Having reviewed the movement of prices in the last few weeks, the Government has decided that it makes sense to adopt a flexible approach to deal with the uncertainty that prevails in fuel prices. In this current period of lower fuel prices, the Government will apply the pass through mechanism every three weeks to allow consumers to benefit from any further downward movement in prices.”

Which reminds me of my previous article:  Why we don’t need cabinet doctors to solve a math equation.

The prime minister and minister for finance, Dr Kenny Anthony, his apologist and agents of the state have run out of sensible economic factuality to spin their propaganda.

It time to face reality! It’s the economy, stupid – Bill Clinton.

Now, the apologists’ and agents’ daily assault on reasoning can no longer suffice in the face of world prices over the last eight months, while neighbouring islands held prices much lower than Saint Lucia, and the great need for investment and economic growth.

In the first instance, this recent reduction would have provided much needed relief to the people of Saint Lucia from extortionate practices, bad liberal economics and would have spared the public from a flock of disrespectful propagandists that permeate media outlets, while sucking on the nation’s breast.

For the time being, consumers and the people of Saint Lucia stand to benefit from delayed gratification.

By Melanius Alphonse

Featured image courtesy of: www.stlucianewsonline.com


MelaniusMelanius Alphonse is a management and development consultant. He is an advocate for community development, social justice, economic freedom and equality; the Lucian People’s Movement (LPM) www.lpmstlucia.com critic on youth initiative, infrastructure, economic and business development. He can be reached at malphonse@rogers.com

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