Global fuel prices are affecting the entire region

The Cayman Islands on Thursday announced an increase to more than US$4 per gallon.

Across the region governments have been negotiating with petrol dealers and oil importers to try and work out a formula to cushion the effect of the spiralling global fuel prices.

In St. Lucia, the price of fuel is fixed by the government and is currently EC$7.75 per gallon.

This practice is intended to cushion the effect by increasing or decreasing the consumption tax depending on world oil prices.

Everist Jean-Marie - President of the Petrol Dealers Association of St. Lucia told BBC Caribbean Service, currently the government is losing revenue through this procedure and it must act to recover money.

"For some time now we have been anticipating an increase in the price. My fear is while most countries in the region have increased the price of fuel at the pumps, St. Lucia has yet to do so. My major worry is that the point where it has to, it may be so significant it will hurt," Mr Jean-Marie said.

Antigua talks

In an attempt to decrease the damage of increasing prices, Antigua has been holding talks with its monopoly importer the West Indies Oil company.

Petrol retails in Antigua for EC$7.98 per gallon.

Maurice Percival , Secretary of the Service Dealers Association, in Antigua told BBC Caribbean Service the organisation’s main concern is maintaining their mark up.

"Service Station dealers have been in constant battles with the previous government concerning price rise and how it affects our profit margin. When the price rises we are hoping our percentage is adjusted accordingly so we can maintain that percentage," Mr Percival said.

The matter was also expected to be discussed by the Barbadian government on Thursday.

Currently the government sets the fuel price and through subsidies it absorbs rising costs.

But with prices spiralling observers say this position has become untenable.