Although the room to lower prices on Saba is limited, there are still measures that can be taken to reduce the costs of living on the island. This is the conclusion of Economic Bureau Amsterdam (EBA) in the study Steep Island, High Prices, in which it investigates the causes of the high prices on Saba and proposes solutions.
There are opportunities for the Public Entity Saba, the Central Government and businesses to control the prices of groceries. The most direct effects can be expected from the construction of a cooling and storage facility, the abolition of expenditure tax on transport costs, allowing freight on the ferry service from Sint Maarten, the sale of cheaper brands and the application of lower margins on the most basic goods.
The room to reduce costs is limited because the high prices are largely caused by factors that cannot be influenced. For example, costs are high due to geographical factors and because Saba has a different political status than Sint Maarten.
Grocery prices on Saba are significantly higher than on Sint Maarten, where most products are purchased. Measurements show that Saba is on average about 30 percent more expensive.
Following the report, the Public Entity Saba has created a podcast about prices on Saba. . This podcast can be found here. The full report with the EBA findings can be read here.