Here are some links to a recent announcement by the government of Barbados lowering the price for gasoline and diesel fuel.
Nation News article
Barbados Advocate article
Yes, the price of gasoline is controlled by government in Barbados, rather than being determined by supply and demand. The price is set artificially low. Under normal supply and demand conditions, this would result in a market shortage (P < P* means that quantity demanded will exceed quantity supplied). However, in this case, the government of Barbados makes up the differential between the true market price and the price ceiling by directly paying the oil supplier. This prevents the shortage, but of course amounts to a subsidy for gas and diesel consumption... the opposite of a tax. Taxpayerswill (eventually) pay this debt.
You'll note in the articles that electricity consumption is also subsidized. Electricity of course is generated by burning fossil fuels. In the case of Barbados and most of the Caribbean, electricity comes from combustion of oil and coal.
What are the environmental implications of these subsidies?
Do these subsidies encourage or hinder the push for alternative energy sources?