St Kitts and Nevis reduces fuel costs with 50% excise tax cut

Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew has announced a reduction in fuel costs through a 50% cut in excise taxes along with a decrease in the customs service charge on gasoline from 6% to 3%, in response to a recent surge in the prices of gasoline to approximately Eastern Caribbean $19.14 per gallon during late March and early April.

This announcement was made by the Prime Minister on Tuesday, 14th April, 2026 during his national address.

In his address, the Prime Minister mentioned a 50% reduction in Gasoline Excise Tax which reduces the cost of gasoline from Eastern Caribbean $1.95 to $0.98 gallon. This measure will be effective from 20th April, 2026 till 31st July, 2026. With this, the government will absorb $1.2 million and shield the people of the nation.

Everyone including families, households, motorists and small businesses will benefit from this measure. Along with this the lower fuel cost would mean a lower transportation cost for every driver, which would save every person a good amount of money.

The Prime Minister also reduced the custom service charge on gasoline from 6% to 3% until 31st July, 2026. With this the government will take a cost of $600,000 in order to help its people.

PM Terrance Drew also mentioned about the initiatives taken by the government in upgradation of the existing alternative energy equipment policy. These include solar PV panels which are made free from VAT, CSC and import duty application until 31st December, 2026.

Dr. Drew mentioned that he will not allow any hidden fees to become hidden taxes. Due to this he stated that any surcharge imposed by the shippers will not be included in calculating the customs taxes or import duties.

Further, Dr. Drew also announced the continuation of their discounted VAT rate days for 2026, which are designed to provide relief during the key periods of the year. The discounted rate will be observed on Friday, 17th April, 2026 for the Easter period.

For the back to school period, the discounted VAT rate days will take place on Friday, 28th August and Saturday, 29th August, 2026. The discounted VAT rate days will be held on Friday, 11th December and Saturday, 19th December, 2026 for the Christmas season.