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Dr. Anthony. |
BASSETERRE, ST. KITTS, OCTOBER 25TH 2005 The continued rise in oil prices is going to lead to further price adjustments in all member countries of the Organisation of Eastern Caribbean States (OECS).
This was disclosed by Chairman of the Central Bank Monetary Council, St. Lucias Prime Minister Dr. the Hon. Kenny Anthony.
He said Finance Ministers noted the increases in governments budget deficits due to the escalating oil prices and agreed that governments may have to make further adjustments in all countries, given that the continued subsidisation of oil prices is not sustainable.
Ministers of Finance from the Organisation of Eastern Caribbean States (OECS) spent a considerable amount of time and had in-depth deliberations on the effect of oil prices on the economies of the sub-region during the two-day 54th Monetary Council Meeting in St. Kitts last week.
Therefore, the Council has agreed to adopt a pass through system which reflects the change in the price of oil, said Dr. Anthony.
He said the Council has agreed that member governments should adopt a common oil pricing mechanism for the ECCU, which is transparent, credible and predictable.
This is based on a common spot price which should be the US Gulf price, a minimum consumption tax rate on fuel within the sub-region and common retail and wholesale margins taking into account the circumstances of member countries, said the St. Lucia leader.
Prime Minister Anthony said the Monetary Council has also agreed to the establishment of a permanent regional body to monitor the movement of oil prices within the sub-region and advise on the appropriate energy policy and engage in discussions with the oil suppliers at the regional and international levels.
