CDB advises St Lucian government

President of the Caribbean Development Bank Dr Compton Bourne is advising the St Lucian government to reconsider its policy on subsidy for fuel.



The St Lucia government has reportedly been subsidizing the price of petroleum products by two point eight million dollars for several years.



Mr Bourne said the government would benefit from discontinuing these subsidies given the country’s limited fiscal capacity.



He said revenue saved could be redirected into critical sectors such as sugar and flour.



Mr Bourne’s comment comes days before Prime Minister Stephenson King is scheduled to table the country’s budget.



King will deliver the budget on Friday and is expected to announce the introduction of a “pass through mechanism” allowing for the price of oil to be determined by the market.