Minister of Finance Marinka Gumbs says her ministry has already carried out the groundwork for a possible temporary reduction of the fuel import duty on gasoline from 29 cents to 14.5 cents per litre, but Government must still collectively determine whether the relief should be introduced and when it can be done responsibly.
Speaking during the continuation of the 2026 Budget debate, Gumbs confirmed that Finance has assessed the possibility of cutting the existing duty in half as a temporary measure to provide some relief to consumers facing higher fuel costs. The Minister was immediately asked what was the hold up and which Ministry has to now act. She was also asked what exactly has the Finance ministry done to lay the ground work. She said it is not about who did not do his or her part it is about the fact that Finance submitted its proposal and now it has to be collectively decided upon
The Minister said present circumstances are different from those of 2022, when temporary fuel relief was introduced as St. Maarten dealt with the economic consequences of the COVID-19 pandemic. Today, the pressure is being driven by different external factors, including geopolitical developments and international oil prices, but she acknowledged that the impact on consumers remains real.
Higher fuel costs, Gumbs noted, do not affect motorists alone. They can also contribute to the wider cost of living and increase the cost of doing business, which is why Finance has not dismissed the possibility of temporary Government intervention.
The Ministry has already calculated the implications of reducing the fuel import duty, meaning the technical groundwork is available if the Council of Ministers determines that relief is warranted. Gumbs stressed, however, that lowering the duty would also mean Government giving up revenue it currently receives and that the benefit to consumers has to be weighed against the impact on public finances.
For that reason, the final decision cannot rest with the Ministry of Finance alone. Gumbs said Government must collectively determine whether current conditions justify intervention, whether the country can absorb the revenue loss and when such a measure could be introduced responsibly.
Prime Minister Dr. Luc Mercelina, responding separately during the debate, also confirmed that temporary fuel relief is being examined and pushed back against suggestions that Government is doing nothing to address cost-of-living pressures simply because the budget does not contain a line specifically labelled “relief.”
Mercelina pointed to a one-year utility relief pilot program for vulnerable residents, under which qualifying persons can receive vouchers valued at Cg 50 each, up to a maximum of Cg 250 per month, toward electricity and water bills. He presented the program as an example of relief that is already being implemented rather than simply discussed.
The Prime Minister said responsible relief must be legally sound, properly costed and financially sustainable. Government, he said, cannot simply announce a blanket subsidy or tax reduction without first determining how much it will cost, how long it will last, who will qualify and what source of funding will be used to support it.
On fuel specifically, Mercelina said Government is examining temporary relief associated with high fuel prices and the possibility of supporting consumers through a reduction in the fuel import duty. He cautioned that the fact that a similar measure was used in the past does not automatically mean that it can simply be repeated today without examining the financial consequences.
Mercelina also noted that the current gasoline price stands at approximately Cg. 3.07 per litre, which he said remains below the price level that prevailed when the previous administration introduced its temporary fuel-duty reduction.
Gumbs similarly made clear that she does not believe it is too late for Government to provide temporary relief if current circumstances warrant it. From Finance's side, she said, the necessary work has already been done to determine what a reduction could look like.
The proposal currently examined by Finance would lower the fuel import duty from 29 cents to 14.5 cents per litre for a temporary period. What remains is a collective Government decision on whether the present combination of fuel prices, cost-of-living pressures and the country's financial position justifies putting that relief into effect.
Both Gumbs and Mercelina stressed that any intervention must balance immediate assistance to consumers with Government's responsibility to maintain sustainable public finances. The question before Government is therefore no longer whether a temporary reduction can technically be done, but whether the financial conditions are right to proceed and when such relief should begin.
