PM warns of ‘horrendous’ impact for St Lucia if oil prices increase significantly

CASTRIES, St Lucia, CMC – Prime Minister Phillip J. Pierre has warned that if global oil prices, as some experts predict, reach US$200 per barrel due to the ongoing conflict in the Middle East involving the United States, Israel and Iran, the impact on St Lucia could be “horrendous.”

Pierre, who said he is in the process of preparing his budget policy statement to be delivered in Parliament on April 21, told reporters he is also concerned about the “rollercoaster” in the global economy, particularly as it relates to fuel prices.

“I have great concern about it. There are some experts who predict that oil on the world market may go up to US$200 a barrel. If that happens, the lag effect on us will not come as soon as the price goes up, but when it does, it is going to be horrendous, to say the least.

“Whether we have any control of that, we don’t. The sad thing is we do not. But if what some experts are predicting comes true—that oil on the world market goes up to US$200 a barrel—it will have a serious effect on us.”

Pierre said his administration is continuing efforts to cushion the impact of any increase in global oil prices, noting that “the budget is not being presented with that eventuality, but we are going to put some measures in place to cushion the effect, as far as possible.”

“But I can assure the people of St Lucia that the Government of St Lucia, as we have always cared for the people, will continue to do what we can to cushion the effect. Hopefully, good sense will prevail and the price of oil on the world market will not reach these heights,” Pierre added.

Late last month, Pierre presented an EC$2.189 billion budget to Parliament, expressing confidence that sound policies, strong fiscal management, and decisive action will allow his government to “competently navigate” the current global environment.

Presenting the Estimates of Revenue and Expenditure ahead of his policy statement, Pierre told legislators that, notwithstanding uncertainty in the geopolitical environment, he remains “optimistic that this year will be one of growth.”

“This year’s budget estimates are based on projections for continued economic growth, supported by improved performance in the tourism sector, increased public and private sector construction activity, and expansion in domestic economic activity through growth in the orange and youth economy.”

Pierre said that in the 2026–2027 budget proposals, the government will endeavour to strengthen the country’s resilience in preparation for the negative effects of climate change and economic shocks.

“Every effort will be made to improve overall productivity and the efficiency of the delivery of government services. The private sector will be expected to assist the government’s efforts to improve St Lucia’s ease of doing business,” he said.

Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.