As the war in Iran rages on, Home Affairs Minister Alexa Lightbourne assures islanders that the government is monitoring the potential impact on the local cost of living
Government will not hesitate to cap the price of fuel if necessary.
This from Alexa Lightbourne, Minister of Home Affairs, in response to fluctuations in global oil prices due to the war in Iran.
Bermuda Broadcasting reached out on Monday to find out if Government may cap the price at the pump as they did in 2022 due to the war in Ukraine.
Minister Lightbourne responded, saying that “the Ministry of Home Affairs is closely monitoring the impact of the ongoing conflict in the Middle East on global oil markets and the potential consequences for Bermuda’s fuel and energy costs.”
Global energy prices have been volitile since the U.S. and Israel launched a war against Iran 12 days ago.
The Strait of Hormuz, a chokepoint along Iran’s coast, carries about a quarter of global seabourne oil trade, and exports along the route have effectively been halted.
Sources told Reuters that Iran has deployed about a dozen mines in the Strait.
Oil prices had fallen after surging over $100 a barrel on Monday, but they have been creeping up again. Brent futures was at $91.20 a barrel around midday.
The Home Affairs Minister told us that “Bermuda relies entirely on imported fuel, and as a small island jurisdiction, we are not immune to global price shocks.”
“We understand the concern this creates for families and businesses already navigating a high cost of living.”
Retail fuel prices are reviewed monthly by the Regulatory Authority, Minister Lightbourne affirmed, and assessed before reaching customers.
The Minister continued, “when Bermuda last faced a global fuel price spike, this Government acted swiftly to cap the price of fuel to protect consumers, and we will not hesitate to consider that option again if the situation warrants it.”
READ the Minister’s comments below…
Response from Alexa Lightbourne, Minister of Home Affairs:
“The Ministry of Home Affairs is closely monitoring the impact of the ongoing conflict in the Middle East on global oil markets and the potential consequences for Bermuda’s fuel and energy costs. Bermuda relies entirely on imported fuel, and as a small island jurisdiction, we are not immune to global price shocks. We understand the concern this creates for families and businesses already navigating a high cost of living.
“The regulation of Bermuda’s energy and fuel sectors falls under the Regulatory Authority of Bermuda, which has independent statutory responsibility for overseeing electricity tariffs, fuel pricing, and consumer protection.
“The Ministry has received a detailed briefing from the Regulatory Authority on the current market situation, including the mechanisms in place to moderate the pace at which global price movements flow through to local consumers. Retail fuel prices are reviewed monthly, while electricity costs are adjusted quarterly through the Fuel Adjustment Rate; both of which provide points at which the impact of global movements is assessed before reaching consumers.
“This Government has already taken decisive action to reduce the burden of energy costs on Bermudian households through recent budget measures. When Bermuda last faced a global fuel price spike, this Government acted swiftly to cap the price of fuel to protect consumers, and we will not hesitate to consider that option again if the situation warrants it. The Ministry will continue to work closely with the Regulatory Authority and industry stakeholders to safeguard affordability and keep the public informed, as the situation develops.”
