PHILIPSBURG:--- Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten has outlined Government’s role in fuel pricing and the measures currently under review, including fuel excise.
The Minister’s remarks were made in response to questions during the Council of Ministers Press Briefing held on Wednesday.
Fuel prices in Sint Maarten are primarily driven by international market developments. As global oil prices fluctuate, these changes are reflected locally through the established pricing mechanism. Government does not set fuel prices arbitrarily but regulates them through a maximum price mechanism based on international market developments.
Fuel prices are driven primarily by international market developments, while local consumption patterns can influence how strongly those increases are felt in Sint Maarten.
A key component of that structure is the excise tax on fuel. The Minister confirmed that Government is actively reviewing the current excise framework. However, such measures require careful consideration, as excise revenues form part of the national budget and support public expenditure across multiple sectors.
The Minister added that similar adjustments to the excise structure were implemented in 2022. While these provided short-term relief, they also created ongoing budgetary implications that continue to affect Government’s financial position today.
She further explained that any changes at this stage are dependent on the status and finalization of the 2026 budget and require alignment with the Ministry of Finance, which determines the broader fiscal impact of such measures.
“Any adjustment to excise must be weighed against its broader financial impact. These are not isolated decisions and require coordination with the Ministry of Finance, particularly in the context of the 2026 budget,” the Minister said.
Beyond fiscal measures, Government continues to assess the downstream impact of fuel price increases on goods and services. TEATT maintains regular communication with shipping companies to track cost developments and uses this information to guide market oversight.
Through its inspection services, the Ministry reviews the pricing of essential goods to ensure that increases at the retail level remain proportionate to actual cost changes. Where irregularities are identified, engagement takes place with businesses to address them.
At present, no significant or disproportionate increases in the basket of basic goods have been recorded. However, Government notes that the situation remains dynamic and subject to ongoing global developments.
The Minister also acknowledged the broader economic effects of rising fuel costs, including potential impacts on transportation, utilities, and tourism. While external factors such as aviation fuel prices may influence airfares, current tourism indicators remain stable, with hotel occupancy and forward bookings performing in line with expectations.
Government will continue to keep international developments under close review and assess targeted measures where necessary to mitigate local impact.
Recognizing that fuel pricing is a complex issue and one that deserves clearer public explanation, the Minister has asked the Ministry to prepare a comprehensive breakdown of the fuel pricing mechanism in Sint. Maarten. The goal is to give residents a clearer understanding of the main factors that influence the final price at the pump and to make that information more accessible to the public. The Ministry expects to share that overview in the coming weeks as part of Government’s ongoing commitment to transparency and public understanding.
