Residents of Montserrat are breathing a sigh of relief after a significant reduction in Liquefied Petroleum Gas (LPG) prices was implemented earlier this month. The price cuts come after months of public concern over a sharp increase in LPG costs between November and December 2024, which saw the price of 100-pound cylinders rise from $200 to $265.
During a recent Legislative Assembly session, Member of the Opposition Donaldson Romeo pressed Minister of Finance Premier Reuben T. Meade for clarity on why the promised December price reduction did not materialise. Premier Meade acknowledged the delay but outlined the steps taken to reach a resolution.
“The Honourable Member is fully aware that the prices were not reduced in December as expected,” Meade said. “Following discussions with Delta Petroleum in December, an agreement was reached to reduce the prices. However, the reduction only took effect on January 13, 2025.”
The new pricing represents significant savings for consumers:
- 100-pound cylinder: Decreased from $265 to $195, a $70 reduction.
- 22-pound cylinder: Decreased from $58.25 to $42.84, a $15.21 reduction.
- 20-pound cylinder: Decreased from $52.95 to $38.95, a $14 reduction.
Transportation Costs and Volume Challenges
Romeo sought additional clarity on whether the initial price hike was caused by transportation issues and if their resolution led to the reductions. Meade explained that fuel pricing is determined by several factors, including product cost, transportation, duties, handling charges, and agent fees.
“When the prices were calculated in December, they were not what we expected,” he said. “We called upon Delta Petroleum to honour the agreement made earlier. While I won’t go into the specifics of the negotiations, the outcome was a significant reduction in prices.”
Meade added that Montserrat’s low storage capacity and volume challenges contribute to fluctuating costs. To address this, Delta Petroleum has agreed to invest in additional storage tanks, which are expected to stabilise prices over longer periods.
A Win for Consumers
Despite the delay, Romeo expressed satisfaction with the eventual price cuts.
The reductions come as a welcome reprieve for households and businesses grappling with rising living costs. Further updates are expected as discussions on long-term fuel storage solutions continue.
