Prime Minister Phillip J. Pierre has warned that a sharp surge in global oil prices driven by the ongoing conflict involving the United States, Israel and Iran could have devastating consequences for Saint Lucia.
Speaking to reporters while preparing his budget policy statement scheduled for April 21, Pierre said he is deeply concerned about volatility in the global economy, particularly fluctuations in 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,” Pierre said.
The Prime Minister noted that Saint Lucia, like many small island developing states, has limited control over global oil prices but would feel the impact significantly if forecasts materialize.
“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,” he added.
Pierre said his administration is working to cushion the potential impact of rising energy costs, although the upcoming budget was not specifically designed around oil reaching those levels.
“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,” he said.
He also sought to reassure citizens that the government would continue efforts to protect households and businesses from rising costs.
“I can assure the people of Saint Lucia that the Government of Saint 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.
Last month, Pierre presented an EC$2.189 billion budget to Parliament, expressing confidence that prudent policies and strong fiscal management would help the country navigate global uncertainties.
Presenting the Estimates of Revenue and Expenditure ahead of his policy statement, the Prime Minister said he remained optimistic about economic growth despite geopolitical tensions.
“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 told legislators.
He added that the 2026–2027 budget proposals will focus on strengthening national resilience to climate change and economic shocks, improving productivity, and enhancing the efficiency of government services.
Pierre also emphasized that the private sector would play a key role in improving Saint Lucia’s ease of doing business as the country seeks to maintain growth amid global uncertainty.
