Prime Minister Gaston Browne has disclosed that the Government borrowed EC$30 million to settle debts linked to its efforts to keep fuel prices below market levels.

Speaking Saturday on the Browne and Browne Show, Browne said the loan was used to meet obligations accumulated while the administration absorbed rising international petroleum costs to limit the burden on consumers.

The disclosure follows a EC$2-per-gallon increase in gasoline and diesel prices this week. Before the adjustment, gasoline cost EC$14.50 per gallon and diesel EC$14.25—reportedly the lowest prices in the Eastern Caribbean Currency Union in July.

Browne previously said the pricing policy had cost the Treasury about EC$24 million in forgone petroleum revenue over six months. The Government had also paid at least EC$15 million to the West Indies Oil Company to support the lower prices.

Although the Ministry of Finance recommended raising prices by EC$3.50 per gallon, Browne said he opted for a smaller increase to ease the impact on motorists.

The adjustment came amid a dispute with private service station operators over their profit margins. Several stations closed Tuesday during industrial action, leaving motorists dependent on WIOC-operated outlets.

Most stations reopened following discussions between the Prime Minister and dealers’ representatives. The parties agreed to a 90-day review of issues affecting station operators and fuel haulers.

A special committee will also consider a proposal to raise dealers’ margins from 12 per cent to 15 per cent.

Browne warned that further increases could follow if international petroleum prices continue to climb.

This article was originally published by Antigua News Room. Read the original article here: Government Takes $30M Loan to Clear Fuel Subsidy Debt as PM Browne Defends Price Increase.