The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

SURGING global oil prices driven by conflict in the Middle East are expected to place pressure on electricity, transportation and food costs in The Bahamas, Prime Minister Philip “Brave” Davis said yesterday, as he sought to reassure the public that existing reforms will help cushion the impact.

Addressing the issue, Mr Davis, who did not take questions from the press, said the conflict has disrupted a key global energy transit route, sending oil prices from around $70 earlier this year to well over $100 a barrel.

“This increase, and the uncertainties about what will come next, are putting pressure on oil prices, shipping, and supply chains,” he said in a speech at the Office of the Prime Minister.

He said the effects of higher fuel prices will filter through to electricity, freight and transport costs, and eventually grocery prices.

“For a small island country like ours, that matters,” he added. “When fuel prices rise in a global market, that has an impact on electricity costs, freight costs, transport costs, and, in time, prices at the grocery store.”

Mr Davis said the government has been monitoring developments, engaging energy partners and planning for different scenarios.

He said policy changes introduced earlier in his administration have strengthened the country’s position, particularly energy reforms aimed at improving efficiency and managing risk.

“That work is still ongoing, but it means we are able to say that your electricity bills, which are lower already from the changes, will not be impacted by the current crisis,” he said.

The prime minister said he was due to meet with the Retailers Association to discuss the upcoming removal of Value Added Tax on food, set to take effect on April 1, and how to ensure the measure delivers relief.

“That meeting is focused on one thing: how we work together ahead of the April 1 VAT reduction on food to bring costs down for Bahamian families.”

He said the government will continue working with retailers to ensure savings reach consumers.

“My government will stay close to this issue,” he said. “We will work with retailers, we will listen carefully, and we will keep pushing for results that people can feel in their everyday lives.”

Mr Davis also addressed regional security concerns linked to the conflict, warning that instability can lead to illegal migration, maritime smuggling and other unlawful activity.

“The Royal Bahamas Defence Force remains on alert,” he said, adding that RBDF assets are monitoring the country’s maritime domain from the Great Bahama Bank to Cay Sal Bank and Anguilla Cay, in coordination with the United States Coast Guard and other partners.

In recent operations, RBDF personnel intercepted 57 migrants in the Little Inagua area over two days, with all people transported safely to Great Inagua as investigations continue.

“That operation is a reminder that border security is daily work. It requires investment, coordination, readiness, and strong partnerships,” Mr Davis said.

He said the government has invested in strengthening the Defence Force’s capacity and is maintaining close communication with regional and international partners.

“I have also directed the Minister of Foreign Affairs, Fred Mitchell, to remain engaged with his regional colleagues,” he said.

“All options are on the table to protect the livelihoods of Bahamians.”

“These are serious times.”

“But this is also a time for calm heads, steady hands, and a responsible united team in government.”