The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Energy Minister Jobeth Coleby-Davis said Bahamas Power & Light's fuel hedging strategy has saved Bahamian consumers approximately $21.7m in just four months by shielding them from rising global oil prices.

Mrs Coleby-Davis revealed during her contribution to the 2026-2027 Budget debate the fuel price protection arrangement was executed in 2025 as part of broader efforts to stabilise electricity costs and reduce consumers' exposure to volatile international energy markets.

"In 2025, BPL executed a fuel price protection arrangement to safeguard our customers from market volatility and keep the price of fuel fixed," she said.

"For clarity, BPL secured a fixed strike price of US$65 per barrel for one year. When international oil prices rise above that level, as they sharply have, our fuel costs remain constant."

Mrs Coleby-Davis said the arrangement has already begun producing measurable savings for electricity consumers.

"Since the fuel arrangement began generating savings in February 2026, approximately $21.7m in savings have been realised.

"This is money that has stayed in the pockets of Bahamian families and businesses rather than being absorbed by rising energy costs."

She argued that the benefits extend beyond residential consumers, providing greater certainty for businesses seeking to manage operating expenses.
"Not only are residential consumers protected from price spikes, but commercial consumers are able to effectively budget their energy costs and reliably predict annual energy expenditures," she said.

The disclosure comes as governments and utilities worldwide continue to grapple with energy price volatility driven by geopolitical tensions and fluctuations in global oil markets.

Mrs Coleby-Davis outlined a Ministry of Energy, Utilities and Aviation budget that she said is designed to support ongoing reforms across the country's energy, water and aviation sectors.

The ministry has been allocated $91.9m in recurrent spending for the 2026-2027 fiscal year, including $200,000 earmarked specifically for energy reform initiatives.

Other allocations include $51.1m for Water & Sewerage Corporation development projects, $610,000 for the Department of Aviation, $7.8m for the Airports Authority, $3.6m for Nassau Flight Services, $9m for Civil Aviation and $18m for the Bahamas Air Navigation Services Authority.

Mrs Coleby-Davis also noted that an additional $6m has been allocated through the Ministry of Finance's capital budget to support energy restoration and renewable energy projects.

"Throughout the ministry and our agencies, there is a clear understanding of the significance of the work ahead and the urgency of achieving our goals, and this national budget is integral to our success," she said.