Be ‘proactive’ & 'prepare' for uncertainties caused by Putin’s War– Premier
The Territory’s leader used the opportunity during a press conference on Friday, 11 March 2022 to issue the call.
“We have to be mindful of what is happening globally, which we do not have any control over, and we must prepare ourselves,” he stated.
“There will be increases in prices due to these developments which are outside of the control of the Government of the Virgin Islands, and our suppliers and businesses.”
Advice to business community
Turning to the business community, the Finance Minister said: “I am urging our businesses to do everything possible to resist any unnecessary price increases that can cause hardship on our people. We cannot force businesses to have compassion, but we can appeal to them.”
He added: “Just as we did with COVID-19, your Government is implementing a working group to monitor the situation and to help the Government to try and stay ahead of the curve as best as we can, and to mitigate against the impacts on the people of the Virgin Islands and our economy. This has to be a collective effort. We will continue to keep our people updated as matters unfold.”
He pointed out that Russia, being the third-largest producer of oil globally, the imposition of sanctions by countries against Russia has triggered a dramatic increase in the price of oil on the global market, a reality that is already being felt in the VI.
The Premier informed that global benchmark oil prices were trading around US$115 per barrel on Thursday (March 10, 2022), up from around $80 a barrel at the end of last year (2021). Analysts at JP Morgan Chase & Co and Bank of America have predicted disruptions to Russian oil flows could push oil prices from US$185 to US$200 per barrel.
In the United States, the average price for gasoline has already reached a record US$4.30 per gallon this week. Pump prices in the US could rise to around $5 per gallon by late May 2022, and forecasters are saying that if oil goes as high as US$200 per barrel, gasoline could reach US$6 - US$7 per gallon.
In the UK, reports on March 12, 2022 state that the average price of unleaded petrol at the pump rose to 1.61 pounds per litre – an increase of 8 pence in one week. Diesel hit 1.70 pounds per litre. Both are record highs, he said.
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