Consumers in Antigua and Barbuda could face further increases in gasoline and diesel prices if international petroleum costs continue to rise, Prime Minister Gaston Browne has warned.

Speaking on the Browne and Browne Show on Pointe FM, Browne said the government had reached the limit of what it could absorb after spending and forgoing more than EC$40 million to keep fuel prices artificially low.

“If these prices continue to increase, clearly we are not in a position to absorb any more,” Browne said. “We have absolutely no choice but to continue to increase the price of petroleum products.”

His warning follows a recent EC$2-per-gallon increase in gasoline and diesel prices, ending months during which the government subsidised consumers as international costs climbed.

Browne said the latest adjustment did not increase the government’s profit margin. Instead, it was intended to cover higher import costs and prevent the existing subsidy from becoming even larger.

According to the prime minister, Brent crude prices increased by about 21% over the previous week and more than 50% over the past year. He attributed the increases largely to global geopolitical instability, including the continuing conflict involving Iran.

Browne said the government had expected petroleum prices to stabilise after an agreement involving the United States and Iran, but the conflict instead became prolonged.

He maintained that fuel prices in Antigua and Barbuda remain among the lowest in the Caribbean despite the recent increase.

The prime minister urged motorists to conserve fuel and use it responsibly, warning that the government has limited financial capacity to continue shielding consumers from movements in the international market.

This article was originally published by Antigua News Room. Read the original article here: VIDEO: PM Browne Warns Further Fuel Price Increases May Be Unavoidable.