Special speech by

Honorable Andrew A. Fahie

Prime Minister and Minister of Finance

to

Rising prices for fuel and other goods and Services in VI

March 13, 2022

With pleasure I say hello and GOD’S BLESSINGS be upon everyone.

I take this opportunity to remind the people of the Virgin Islands that your government remains concerned about the loss of life, physical and mental trauma and other acts of violence witnessed in the conflict between Ukraine and Russia, and that engages global attention. We continue to pray for the safety and well-being of all those affected.

In a previous broadcast, I asked us to remain vigilant as ongoing international developments will have major economic fallout around the world. Needless to say, the Virgin Islands are not immune to such international developments.

As a people, we have had to stretch our resolve more than ever since 2017 to deal with the negative social and economic effects of the 2017 floods as well as the two catastrophic hurricanes Irma and Maria. Having yet to fully recover from these events, we had to deepen our resolve as the people of the Virgin Islands, to learn more about dealing with the negative social, economic and reputational fallout from the worst pandemic in 100 years, and then an imposed commission of inquiry and now these developments.

Together let us continue to pray to GOD to protect and guide us through these unprecedented and difficult times, for only HIM can sustain us and give us peace.

Today, I come once again to ask all of us to start preparing for the impending economic impacts that I warned about above.

Your government will continue to do everything in its power to help mitigate the inevitable economic shocks that are looming, and which are not of its fault.

Along these lines, I would like to appeal to companies in the Virgin Islands that have not received new stock since the recent events in Europe began, but have already raised prices with current stock, saying that the price of their last shipment of goods has increased.

I call on companies that may be involved in such behavior, which may be unethical, to stop it, and to stop it immediately. I make a special appeal to all oil companies, gas stations and supermarkets that may be engaging in unethical business practices to end them immediately.

Consumers who are there all the time bearing the brunt of the economic storm cannot be forced to do so even more as a result of unjustifiable actions.

Therefore, I am sending this stern warning to advise that the government is monitoring and strongly recommending that people refrain from unethical business practices.

Your government has set up a task force to monitor prices and act quickly to deal with any company that raises its prices unjustifiably.

Customs will be part of the surveillance team, as will the Ministry of Commerce, among others.

On Monday, March 14, 2022, Customs and other members of the task force will visit oil companies, gas stations and other businesses to verify and match information on the current cost of fuel and other products. at the prices paid by them. same companies for their last stock received at BVI for which duty was paid on the price quoted at that time.

Each company’s price increase will be marked from their last imported price on fuel and goods and will be checked against their invoice. Which means companies will now be required to share their bills with the government.

Simply put, all prices should reflect the regular markup of product received when they last shipped their product to BVI. This current action by your government will be an ongoing process until further notice.

This week, the task force assigned to this initiative by the government will meet with all gas stations and oil companies, among other businesses, to explain what will be needed as we monitor this economic threat.

In addition to the above, the exercise will also collect ideas to help develop strategies to mitigate, as much as possible, the financial blow that consumers and businesses may suffer.

Your government is fully aware that some jurisdictions have already begun to experience price increases, including fuel prices. There are reports that a few petrol stations have already exceeded the £2 per liter diesel mark. The UK Department for Business, Energy and Industrial Strategy, for example, reported that the average price of a liter of unleaded petrol increased by 3.7 pence between February 28 and March 7, 2022. , to reach just under 153 pence. Over the same period, diesel prices increased by 5.2 pence to an average of 158.6 per litre. The cost of filling a typical 55-litre family car in the UK has risen by more than £2 in just one week. In the United States, the average price of gasoline reached a record US$4.30 per gallon this week.

Benchmark global oil prices were trading around US$115 a barrel last week, down from around $80 a barrel at the end of last year. Analysts at JP Morgan Chase and Co and Bank of America predict that disruptions to global market oil supply could push oil prices up $185 to $200 a barrel. Experts say U.S. pump prices could reach around $5 a gallon by the end of May 2022, and forecasters say that if oil rises to $200 a barrel, gasoline could reach US$6-$7 per gallon.

So, while we understand that there are unavoidable factors that will impact the cost of goods and services, this should not be used by anyone to take advantage of consumers – especially consumers who are facing other problems. .

Your government is there to protect the interests and well-being of the people of the Virgin Islands at all times, while ensuring a fair balance with legitimate business interests. In this vein, we will not accept unjustifiable actions that will impose an unnecessary additional financial burden on our single mothers, struggling fathers, and all people in the Virgin Islands.

Your government is aware that there will come a time when prices will rise due to the ongoing war and global market economies of scale, but until then and even then; your government will continue to act in the best interests of the people of the Virgin Islands.

I ask for the full cooperation of the task force when visiting oil companies, gas stations, supermarkets, etc., as we are in this together.

In addition, your government has created an ad hoc task force to monitor the effects of the war and recommend measures for immediate consideration and implementation by the government to help minimize the inevitable economic blow of the effects of the conflict. .

My government and I would like to commend the many companies that continue to conduct their day-to-day business activities with ethics and a concern for consumers. These companies have nothing to fear when the working group comes into their company.

I end by stating that these mentioned actions are not an attack on the companies but an effort to end price gouging and furthermore a call for fairness from all stakeholders to those who have continued to bear the brunt of economic shocks over the past few years – the consumer – the people of the Virgin Islands.

Your government will continue to work with our various businesses as we also continue to work for you, the citizens, the consumers.

Rest assured that we will continue to keep you informed on this and other matters as we pilot our Virgin Islands ship through these many uncharted waters.

I thank you.