ST. CROIX, VI – The Committee on Economic Development and Agriculture, led by Senator Hubert L. Frederick met in the Fritz E. Lawaetz Legislative Conference Room. Lawmakers received testimony from the Department of Licensing and Consumer Affairs concerning the Department’s oversight and enforcement responsibilities, consumer protection efforts and market conditions affecting gasoline and diesel prices. Additionally, the Committee received testimony from the Department of Tourism regarding the recent loss of Spirit Airlines to the territory, including the effect on airlift capacity, tourism, residents, business travel, and the territory’s economy. Lawmakers considered  a measure that would require the Department of Agriculture to establish and manage a 30 acre orchard in St. Croix. Approved items on today’s agenda will be sent to the Committee on Rules and Judiciary for further consideration and action.

Senators received testimony concerning the Department of Licensing and Consumer Affairs oversight and enforcement responsibilities, consumer protection efforts and market conditions affecting gasoline and diesel prices.  Horace Graham, Assistant Commissioner of the Department of Licensing and Consumer Affairs delivered testimony. According to Graham, fuel prices increased in the territory during the review period driven significantly by the geopolitical conflict that began on February 28, 2026. Wholesale fuel prices increased substantially during the Spring of 2026, and retail prices generally followed wholesale market movements. Diesel fuel experienced the greatest upward pressure in the territory. St. Croix maintained the lowest average fuel prices, but recorded the largest percentage increases in regular and premium gasoline. St. Thomas experienced smaller gasoline increases, but experienced significant diesel increases. St. John experienced the most pronounced diesel increases, consistent with its smaller market size and dependence on marine transportation.  When compared to current national average, the territory’s consumers are paying substantially more at the pump than their mainland counterparts. Graham stated that the department launched a territory wide investigation and issued subpoenas to fuel retailers and marinas to receive records. DLCA has not concluded that any retailer has engaged in unlawful pricing conduct. Preliminary findings will be released in 90 days after completing document review.

The Department conducts weekly fuel surveys across all three island to provide consumers with current, comparable fuel pricing information. The surveys are conducted by department staff. Results are published on the DLCA website, and its social media platforms, such as Linked In, X, Facebook, and Instagram. Before the conflict began, fuel prices in the US Virgin Islands were already higher than the national average. On February 17, 2026, about 10 days before the beginning of the conflict, the average price of regular gasoline in the territory was about $4.23 per gallon, compared to the then national average of $2.94. As of early June 2026, the national average for regular gasoline was about $4.28 per gallon. The territory wide average for regular gasoline on June 2, 2026 was $5.11 per gallon.  

Senators then received testimony concerning the loss of Spirt Airlines and its effects on the territory. Alani Henneman,  Assistant Commissioner of the Virgin Islands Department of Tourism delivered testimony stating that the departure of Spirit Airlines is incredibly significant.  Henneman stated that the territory is expected to lose 565 flights serving St. Thomas and 81 fights serving St. Croix. This represents a loss of 133,889 airlines seats across the territory. This includes 122,273 seats for St.  Thomas and 11,616 seats for St. Croix. According to historical load factors and demand trends, this will result in approximately 99,128 less fewer passenger arrivals through the remainder of calendar year 2026. Of this, 92,593 lost arrivals are projected for St. Thomas and 6,175 are projected for St. Croix.

Henneman stated that the loss of Spirit Airlines is incredibly significant as the territory entered 2026 with significant momentum in visitor arrivals and airlift. In the first quarter of 2026, the territory recorded 303,388 visitor arrivals, which was a 12% increases year over year and a 6 percent increase compared with the same period in 2024. March 2026 delivered very strong results, with 121,716 total arrivals, a 23% increase from March 2025, and 14% higher than the previous record set in 2024. St. Thomas welcomed 98,284 arrivals, up 24% year over year. St. Croix recorded 23,432 arrivals, which was a 20% increase. Through June 2026, the territory demonstrated high visitor demand with 464,289 arrivals to St. Thomas and 108,604 arrivals to St. Croix. These numbers keep the territory on pace to match or exceed 2025 performance, which is estimated to be more than 900,000 visitor arrivals.  Following the announcement of the disruption of Spirit Airlines, the Department of Tourism quickly launched the Stranded Passenger Program, a relief outreach initiative designed to support visitors whose travel to or from the Virgin Islands was disrupted by the airline’s demise.  Through this program, the department received 422 requests for assistance. Henneman also gave an update concerning the recent St. John Celebration. 37,999 visitors travelled to St. John through St. Thomas during the celebration period. This was a 8 percent increase over the last year. Revenues from the food fair, vendor booths, and pageant activities totalled $32,915.

Ava Penn, Interim Executive Director of the Virgin Islands Port Authority reminded the body that Spirit Airlines provided non-stop service from St. Thomas and St. Croix to Fort Lauderdale and Orlando, Florida for almost 20 years. Spirit operated as an Ultra Low Cost Carrier, focusing on low base fares with most of its revenue generated from a la carte services. The airline collapsed due to a combination of financial losses, regulatory setbacks, failed recuse attempts and economic pressures. Spirit Airlines’ departure resulted in the loss of three to five daily flights to the territory, which has reduced travellers’ flight options to the mainland. Since the Departure of Sprit, the Port Authority has continued to work with the Department of Tourism to add new flights and expand air connectivity to the territory.

New airlift has been added to the territory, including Southwest Airlines, from St. Thomas to Orlando and Baltimore (From February 5, 2026), United Airlines from St. Croix to New York (Beginning October 31, 2026), Breeze Airways from St. Thomas to Tampa (begins December 2026), new Inter-Caribbean flights from Cape Air and Contour Airlines, and Fly the Whale, with fights from St. Thomas and San Juan.  VIPA offers an airline incentive program to all airlines to encourage new routes, support the growth of the territory’s airlift, and reduce midday congestion at STT. The airline may also qualify by starting a new route that arrives before 1PM or after 5PM at STT. For a two year service commitment, qualified airlines receive a waiver of 100% of landing fees, and a 50% reduction in terminal parking and user fees for one year.

Lawmakers voted to hold Bill No. 36-0285, An Act Amending Title 3, Virgin Islands Code, Chapter 19 to establish the Virgin Islands Hall of Fame Registry within the Department of Tourism in Committee at the Call of the Chair. The measure will be heard at a future date.

Policymakers considered Bill No. 36-0087, An Act amending Title 7, Virgin Islands Code, by adding Chapter 16 to require the Virgin Islands Department of Agriculture to establish and manage a 30 acre orchard on St. Croix. Dr. Louis Petersen, Jr., Commissioner of the Virgin Islands Department of Agriculture said that he supported the intent of the measure. However, Petersen stated that the successful implementation and long term sustainability of the fruit orchard would require significant dedicated resources to ensure its success. The orchard would require staff, planting materials, soil amendments, pest control supplies, irrigation material, equipment for land preparation, fencing for security as well as weather and energy supply systems.  Petersen stated that the Department of Agriculture is not adequately resourced to assume the task. Petersen recommended that the bill sponsor identify an adequate source of funding to support the orchard.  Petersen stated that without dedicated funding, the department will face challenges with fully implementing the requirements of the legislation.

Dr. Usman Adamu, Dean and Director of the University of the Virgin Islands School of Agriculture supported the proposed measure. Adamu stated that the measure has been identified as a high priority initiative in the Virgin Islands Agricultural Plan of 2021. The Agricultural Plan Task Force recommended an initial budget of $500,000 and recurring annual planning to cover infrastructure, equipment, planning materials, irrigation, fertilizers, pest control and maintenance. Dr. Adamu’ testimony recommended key planning components, including Land Selection, Fruit Tree Selection, Orchard Planning, Irrigation and Fertilization, Pest and Disease Management, Pruning and Training, and Harvesting and Marketing.  Additionally, Adamu recommended that certain trees not be included in the orchard such as citrus trees, such as lemon, lime and sweet orange due to the threat of citrus greening disease, a destructive disease with no cure, and mango trees, because the department already operates a mango orchard that is underutilized, and additional mango production could create competition with existing farmers.

Dale Brown, Owner of Sejah Farm VI commended the measure, but also voiced concerns about the proposal. The measure would authorize the Department of Agriculture to establish and maintain a 30 acre orchard utilizing federal and local agriculture development funds for planning, propagation, irrigation, fencing, staffing, maintenance, and operations. However, the legislation does not provide a dedicated funding source or appropriation to support it. The development of the orchard would require significant investments in land preparations, irrigation systems, fending, propagation materials, planting stock, equipment, labor, pest management, maintenance, harvesting, administration and long term staffing. Depending on the species and the infrastructure required, start-up costs could reach hundreds of thousands or millions before the orchard reaches full production. Brown recommended that the Department should focus more on technical assistance, education, research coordination, conservation support, disaster preparedness, workforce development and strengthening capacity of existing farmers and agricultural enterprises. Brown suggested that the Legislature consider an alternative approach that would achieve the same objectives while creating broader benefits in the territory.

Sommer Sibily-Brown, a representative of the Virgin Islands Food and Farm Council said she supported the goal of expanding local fruit production, improving food security and advancing orchard development. However, she said she did not support the measure in its current form. Sibily-Brown stated that the bill significantly expands the Agricultural Plan’s recommendation from a 10-acre orchard to a 30-acre government operated orchard without addressing funding, staffing, land availability, operational capacity, market demand or long-term sustainability.  The Council recommended a phased data driven, and farmer centric approach that supports qualified farmers through technical assistance, planting materials, infrastructure support and training, while the Department of Agriculture serves as a coordinator rather than the primary orchard operator. The Council also urges the Legislature to conduct fiscal, land-use, feasibility, and market analyses; inventory existing orchard assets and fruit production; ensure processing, storage, and distribution systems are in place; avoid unintended competition with existing farmers; and develop a realistic multi-year implementation plan before moving forward. Sibily-Brown recommended that the measure be held in committee for further vetting and revision. Upon further discussion, Bill No. 36-0087 was held in Committee at the call of the chair.

Senators present at today’s Committee hearing included Hubert L. Frederick, Angel L. Bolques Jr., Marvin A. Blyden, Alma Francis Heyliger, Marise C. James, Avery L. Lewis, Franklin D. Johnson, and  Clifford A. Joseph.

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