NASSAU, BAHAMAS — The Free National Movement is urging the government to move swiftly to shield Bahamian households and businesses from rising fuel and electricity costs as global oil prices surge amid escalating conflict in the Middle East.
The call comes as global financial markets reacted sharply to the crisis. Stocks tumbled Thursday, with the Dow Jones Industrial Average falling nearly 800 points as oil prices jumped following a new wave of attacks by Iran against Israel, U.S. bases and countries across the region.
The Dow closed down 785 points, or 1.6 percent, after briefly dropping more than 1,000 points during trading. The S&P 500 fell 0.6 percent, while the Nasdaq Composite declined 0.3 percent.
Energy markets also surged, with Brent crude, the international benchmark, rising 4.2 percent to $84.75 per barrel, up from about $70 late last week. Meanwhile, U.S. benchmark crude climbed 6.9 percent to $79.80 per barrel as investors grew concerned that prolonged disruptions to oil and natural gas production and transport in the region could drive prices even higher.
Investors on Wall Street are increasingly worried that a sustained spike in energy prices could reignite inflation in the United States, strain household spending, slow global economic growth, and push interest rates higher.
Against that backdrop, the FNM warned that Bahamian families could soon feel the effects of higher global oil prices both at the pump and through increased electricity bills if preventative measures are not taken.
“We are calling for immediate, practical steps to protect Bahamians,” the party said in a statement.
The Opposition is proposing that the government impose a short-term cap on the VAT charged on fuel, similar to a measure previously used in Barbados during a period of high global oil prices.
Under the proposal, VAT would be charged only up to the current average pump price on each island. If global prices push fuel above that level, VAT would not be applied to the increase. The Opposition argued that such a move would shield consumers from sudden price spikes while allowing the government to maintain its expected revenue.
“The Government should not collect extra VAT revenue simply because global oil prices rise,” the statement said.
The party is also calling for the VAT-free electricity threshold for residential customers to be raised from $400 to $600, noting that any increase in global oil prices would likely lead to higher fuel surcharges on power bills.
According to the FNM, raising the threshold would give households temporary breathing room if electricity bills begin to climb.
The Opposition said the government should table the necessary legislative amendments in Parliament immediately, warning that delays could leave families struggling with higher bills, increase costs for small businesses, and worsen inflation across the country.
“The Opposition will support responsible measures that protect Bahamian families while maintaining fiscal discipline,” the statement said. “What we will not support is inaction.”
The party added that the time to act is now, before rising global energy prices translate into higher costs for Bahamian households.
