Finance Minister Colm Imbert announced on Friday that the prices of fuel at the pump would be increased on April 19.
It was a move foreshadowed clearly by the Prime Minister in March when he warned that the treasury could no longer carry the cost of the gas subsidy at the pump that kept the cost of fuel below that of any other Caribbean island for decades.
Faced with rising prices for oil, the subsidy is becoming too expensive for the government.
In the Finance Minister's statement, he noted that more than one billion litres of fuel was pumped annually, dropping only slightly to 950 million litres during 2020 and 2021.
Faced with a rise in consumption in 2022 with the reopening of the country and the unpredictable cost of oil resulting from the Russian invasion of the Ukraine, the decision was made to increase the price per litre of gas by a dollar and the cost of diesel by 50 cents.
Kerosene registered the sharpest rise, from $1.50 to $3.50.
According to Mr Imbert, the unsubsidised cost of a litre of premium gasoline should vary between $6.18 and $7.58 at US$7.58 depending on the price of oil.
The government hit a middle ground of $6.75 per litre for premium gas and hopes to save at least $1.47 billion by reducing the subsidy on fuel at the pump.
The government must be clear about its plan to further reduce or eliminate the gas subsidy and to explain whether it will allow the price of fuel at the pump to float relative to the cost of crude.
These changes will affect every aspect of the local economy.
In mid-May, the government plans to incentivise the import of consumer hybrid vehicles, waiving taxes and customs duties for vehicles with an engine size of less than 1600cc.
That doesn't go far enough.
Managing this country's appetite for cheap fuel wouldn't be solved by Paria Fuel Co Ltd's trading in supplies and CNG has failed as a replacement.
There must be leadership in any plan to increase the number of hybrid and electric vehicles in operation in the country and past guidance on allowable used cars in those categories has been vague and inconsistent.
An alarming amount of the fuel burned in this country is wasted in bumper to bumper traffic and isn't helped by a sketchily implemented public transport system.
The north-south workplace migration demands a more robust solution than the water taxis have provided and east-west work traffic patterns must be revisited to better meet customer needs.
The government must develop a plan, in consultation with stakeholder vehicle importers and customers of its public transport system to ensure that everyone is moving in the same direction, to more efficient use of the country's energy resources.
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