The Government of Grenada has announced a targeted Cost of Living Assistance Programme designed to cushion households, businesses, and the national economy against rising global food and energy prices.
The comprehensive relief package directly addresses international inflationary pressures, including elevated fuel tariffs, inflated shipping costs, and global supply chain disruptions exacerbated by ongoing geopolitical conflicts in the Middle East.
Speaking on the initiative, Minister for Finance Hon. Dennis Cornwall emphasised: “This is not inflation created in Grenada; it is imported inflation. While we cannot control international markets, we can act responsibly to help reduce the impact on our people.”
Expected to directly benefit more than 38,000 households nationwide, the programme will provide targeted economic relief while safeguarding the government’s commitment to long-term fiscal stability. The overall fiscal impact of the initiative is estimated at approximately EC$18 million.
In addition to maintaining existing price ceilings on gasoline, diesel, kerosene, and LPG cylinders through December 2026, key measures include:
- VAT relief on electricity: 100% removal of VAT on electricity for all consumer categories (August to December 2026)
- Energy Import Tax Waiver: Removal of the Customs Service Charge on diesel imported for electricity generation, thereby decreasing the consumer cost of electricity
- Direct Consumer Subsidies: Increase of the monthly electricity subsidy from EC$10 to EC$50, alongside an expansion of the eligibility threshold from 99 kWh to 200 kWh per month
- Retail Tax Relief: Two VAT-Free Shopping Days per month covering groceries, school supplies, hardware, and appliances (August to October 2026)
Minister Cornwall noted that Grenada’s capacity to deliver this package rests on disciplined economic management. “We can provide meaningful relief today because of prudent fiscal stewardship over recent years. We are taking care of our people today while preserving the country’s long-term sustainability. That is responsible governance.”
The Government of Grenada reaffirms its commitment to the principles of good governance, fiscal responsibility, and stability to protect the livelihoods of all citizens across Grenada, Carriacou, and Petite Martinique.
Source: Ministry of Finance
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