Govt approves 50% reduction in gasoline import duty, relief expected for two to three Months

GREAT BAY--Minister of Finance Marinka Gumbs announced in Parliament on Monday that the Council of Ministers has approved a temporary 50 percent reduction in the special import duty on gasoline, marking a decision by government to proceed with a measure intended to provide relief to motorists, households and businesses in St. Maarten. The reduction is expected to apply for an initial period of two to three months, with the possibility of reassessment.

The announcement came during the continuation of Parliament's 2027 national budget debate, when Gumbs was asked to clarify her earlier statements indicating that she remained open to providing gasoline relief. The question sought a definitive answer on whether government would proceed with the measure and when the public could expect it to take effect.

In response, Gumbs confirmed that the Council of Ministers had approved the proposal, moving the initiative beyond the consideration stage that had characterized earlier discussions.

The measure involves reducing the special import duty on gasoline by 50 percent. Based on the proposal previously presented by the Ministry of Finance, the existing duty of 29 Caribbean guilder cents per liter would be reduced to 14.5 cents per liter.

The reduction would lower the import duty component of gasoline costs by 14.5 cents per liter. However, the Minister did not announce a specific implementation date or confirm the precise adjustment that motorists would see in the final retail price at gas stations.

Gumbs explained that the measure would initially remain in effect for two to three months, after which government could reassess the arrangement.

Proposal First Presented in March

The Minister traced the initiative to March 2026, when she first submitted a proposal to the Council of Ministers for a temporary reduction in gasoline import duties.

She explained that the proposal was developed in response to the financial pressure created by fuel prices on households and businesses.

Gumbs said she subsequently reiterated her support for the measure during parliamentary budget discussions and continued advocating for government to consider available options for easing the cost of living.

"After months of persistent efforts, research and advocacy, I am proud that we have reached a point where we can finally translate our commitment into tangible relief for the people of St. Martin," the Minister told Parliament.

She credited cooperation among her ministerial colleagues for advancing the proposal to the point of approval.

The decision follows earlier statements by Gumbs that the Ministry of Finance had completed the technical groundwork for a temporary reduction but that implementation required a collective decision by government.

During the presentation of the revised draft 2027 national budget on November 3, the Minister indicated that the projected budget surplus had increased from Cg 8 million to approximately Cg 10 million.

At that time, she identified the additional Cg 2 million as a potential source of funding for temporary gasoline relief, provided the amount remained available following further adjustments to the budget.

Monday's announcement confirms that the Council of Ministers has now approved the relief measure. Gumbs did not provide an updated estimate of its total cost to government or specify whether the previously identified Cg 2 million would be used to finance the reduction.

Temporary Measure Subject to Reassessment

The approved measure concerns the special import duty on gasoline rather than a general reduction of all fuel-related charges or taxes.

The amount consumers ultimately pay at the pump is determined by several components, including international fuel prices, transportation costs, applicable duties and regulated distribution margins.

Consequently, the reduction in import duty does not necessarily mean that the entire retail gasoline price will fall by 50 percent.

Government has not yet announced the effective date, the revised maximum consumer price or the administrative arrangements for implementing the temporary reduction.

The Minister's announcement establishes an initial relief period of two to three months, with the possibility of reassessment. She did not indicate what criteria would be used to determine whether the measure should be extended.

Gumbs linked the decision to government's broader responsibility to address the financial pressures facing residents while maintaining the country's fiscal stability.

The announcement represents a change from the position outlined during earlier budget discussions, when the Ministry had completed its assessment but was awaiting a collective government decision.

With Council of Ministers approval now confirmed, the remaining details concern when the temporary reduction will take effect, how it will be reflected in gasoline prices and whether government will extend the measure beyond its initial period.

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