Dominica’s PM Skerrit announces a potential $1.50–$2 fuel subsidy to ease rising costs for households, bus operators, and businesses if global oil prices contin
Dominica: Prime Minister Roosevelt Skerrit has announced that the Government of Dominica will lower the fuel prices to about $1.50 to $2.00 per gallon to cushion the impact of rising fuel prices for consumers. This subsidy will be provided by reducing fuel taxes and will take effect if global oil prices keep increasing in May.
The Prime Minister shared this announcement during his press conference on Wednesday, May 6, 2026, where he was seen discussing key issues of national interests. Among the issues the Prime Minister discussed was that of the increase of oil prices in the country.
PM Skerrit reported that global crude oil prices have increased to more than 30 per cent since the U.S-Isarel conflict with Iran began on February 28, 2026. By then, gasoline was valued at $14.96 per gallon, however, as of May 7, 2026, gasoline costs $17.98 per gallon while diesel, is priced at $20.53 per gallon.
He mentioned, “To cushion the impact of rising fuel prices, government will be in a position to provide a subsidy of one dollar fifty cents to two dollars per gallon through reduced fuel taxes by the end of this month when the next cycle will come in price review, that is end of May 2026, should the prices keep increasing.”
The PM went further to explain that the Government will provide over half a million dollars every month to help lower the costs of fuel in Dominica. He added that although this decision will help reduce the burden on the citizens, targeting different households, bus operators and businesses, it is a growing burden for the country’s treasury as it will also significantly affect the Government’s revenue and expenditure performance.
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, shared Dr. Skerrit.
Skerrit assured the citizens that a monthly review of the prices will continue being conducted to protect consumers and reiterated the importance of the geothermal plant in providing energy security and reducing reliance on imported fuel over time.