The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister yesterday sought to reassure that Bahamian households will not see an increase in their electricity bills despite the sharp surge in global oil prices sparked by the Middle East conflict.

Philip Davis KC said Bahamas Power & Light (BPL) bills will not jump even as oil prices surge past $100 per barrel - likely due to the December 2025 hedge that saw the state-owned utility lock-in two million barrels of oil at a $70 price.

He added that while many Bahamians have been watching developments overseas and wondering what the conflict could mean for the cost of living at home, policy changes have strengthened the country’s energy system and helped cushion consumers from the current spike in oil prices. 

“We have been closely monitoring developments, engaging with our energy partners, and planning for various scenarios. I am grateful to be able to say that policy changes we began to make early in our term have built more resilience into our system,” said Mr Davis.

“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.”

The conflict in Iran has disrupted the Strait of Hormuz, one of the world’s most critical energy transit points, through which a significant share of global oil and liquefied natural gas (LNG) shipments normally pass. As a result, international oil prices have surged from roughly $70 per barrel earlier this year to above $100 per barrel.

Mr Davis said such shocks normally have significant implications for small island economies such as The Bahamas, particularly because rising fuel prices can feed through to electricity costs, shipping costs and eventually grocery prices.

He also warned that periods of global instability can create wider regional pressures beyond energy markets, including illegal migration and maritime smuggling.

“The Royal Bahamas Defence Force remains on alert. From Great Bahama Bank to Cay Sal Bank and to Anguilla Cay, we are actively monitoring our maritime space. Our assets remain in the southern Bahamas, and we are working closely with the United States Coast Guard and other partners,” said Mr Davis. 

He said that presence has already produced results, with Defence Force personnel intercepting 57 migrants in the Little Inagua area over the past two days. Twenty-nine migrants were apprehended on Monday and another 28 on Tuesday morning, before being transported to Great Inagua.

Mr Davis added that strong border monitoring remains essential in an uncertain global environment, noting that the Government has invested in strengthening the Defence Force’s capacity since taking office.

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

“That is why, when we came to office, we invested in strengthening the capacity of the Royal Bahamas Defence Force. We understood that in an uncertain world, a country like ours must have the ability to monitor, respond, and protect its territorial integrity.”

Mr Davis said the gGovernment will continue to monitor global developments closely while maintaining communication with international partners. “All options are on the table to protect the livelihoods of Bahamians. We will keep working to protect families from the worst effects of global instability,” he added.

“We will keep working to secure our borders and our waters. We will keep working with partners at home and abroad. And we will keep making decisions with the country’s long-term interest in mind.”