The Caribbean nation of Grenada has launched a targeted, multi-faceted Cost of Living Assistance Programme to shield local households, small businesses, and the broader national economy from the sharp upward swing in global food and energy prices that has strained budgets across the world in recent months.
This wide-ranging relief initiative is crafted specifically to counteract international inflationary pressures that have spilled over into Grenada’s domestic market: these include heightened fuel tariffs, bloated global shipping costs, and persistent supply chain disruptions that have been worsened by ongoing geopolitical tensions in the Middle East.
While unveiling the programme, Minister of Finance Dennis Cornwall stressed that the inflation driving cost increases across the country is not homegrown, but imported from global markets. “While we cannot control international markets, we can act responsibly to help reduce the impact on our people,” Cornwall explained during the official announcement.
The initiative is projected to deliver direct support to more than 38,000 households spread across Grenada, Carriacou and Petite Martinique. It is structured to deliver immediate targeted relief while upholding the government’s longstanding pledge to maintain fiscal stability, with the total cost of the programme estimated at roughly 18 million Eastern Caribbean dollars.
Among the core, long-term measures is the extension of existing price caps on four key energy products: gasoline, diesel, kerosene, and liquefied petroleum gas cylinders. These price ceilings will remain in place through December 2026 to prevent sudden cost spikes for consumers. Additional key relief provisions include:
1. Full VAT elimination on electricity bills for all consumer categories, running from August 2025 through December 2026
2. A full waiver of customs service charges on diesel imported for power generation, a move designed to cut wholesale production costs that translate to lower electricity bills for end users
3. An increase to direct monthly electricity subsidies, raising the maximum payment from EC$10 to EC$50, alongside a major expansion of eligibility to cover households that use up to 200 kilowatt-hours per month, up from the previous threshold of 99 kilowatt-hours
4. Two VAT-free shopping days per month from August through October 2026, covering essential goods including groceries, school supplies, hardware, and home appliances
Cornwall emphasized that the government’s ability to roll out this substantial relief package stems from years of disciplined fiscal 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,” he said.
In closing, the government of Grenada reaffirmed its commitment to upholding the principles of good governance, fiscal responsibility, and economic stability to protect the livelihoods of all citizens across all three of the nation’s main islands.