Bahamian Prime Minister Phillip Davis. Photo: CMC

“As a result, international oil prices have surged from around the $70 US range earlier this year to well over $100 US a barrel, one of the sharpest energy price shocks the world has seen since the Ukraine crisis,” Bahamian Prime Minister Phillip Davis said in a statement adding that “this increase, and the uncertainties about what will come next, are putting pressure on oil prices, shipping, and supply chains”.

He said he is aware that many Bahamians have been following the events in the Middle East, and are wondering what this moment means for the cost of living here at home.

“For a small island country like ours, that matters. 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.

“People want to know what this means for their light bill, what it means at the pump, and what it means for food prices. We have been closely monitoring developments, engaging with our energy partners, and planning for various scenarios.”

Davis said the policy changes made by his government over the past few years “have built more resilience into our system.

“In particular, the major energy reforms we’ve put in place, which include major efficiencies and improvements, and risk mitigation strategies, have left us in better shape. 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.”

Davis said he met with the Retailers Association on Tuesday afternoon that focused on how all stakeholders work together ahead of the April 1 value added tax (VAT) reduction on food to bring costs down for Bahamian families.

“Families across our country are working hard every day, and they deserve a government that stays focused on easing pressure at the checkout line and around the kitchen table. That is why we came together in a spirit of cooperation and shared purpose.

“I am pleased we could find a solution so that Bahamians will benefit from the change of VAT on unprepared food in grocery stores beginning April 1,” Davis said, adding “this is about helping families keep more of their money in their pockets.

“It is about making everyday essentials more affordable. And it is about showing that when government and industry come together with goodwill and seriousness, we can deliver real results for the people we serve.”

Davis said that periods of instability can create pressure far beyond the original conflict zone including illegal migration, maritime smuggling, and other unlawful activity across the Caribbean region.