NASSAU, BAHAMAS- Energy, Utilities and Aviation Minister Jobeth Coleby-Davis has defended the Davis administration’s fuel hedging strategy, telling Parliament that a fixed-price fuel arrangement has already generated $21.7 million in savings for Bahamian consumers in just four months—claims that triggered a sharp political exchange with Opposition Leader Michael Pintard, who challenged the origins and credibility of the government’s broader energy reform agenda.
During her budget debate contribution Coleby-Davis told the House of Assembly that Bahamas Power and Light (BPL) has successfully implemented a fuel price protection arrangement designed to shield consumers from global oil volatility and stabilize electricity costs. She explained that the utility secured a fixed s price of US $65 per barrel for one year, insulating the domestic market from international price spikes.
“When international oil prices rise above that level, as they sharply have, our fuel cost remains constant,” Coleby-Davis said.
She added that the arrangement has already delivered measurable relief to consumers since becoming financially effective in February 2026.
“Since the fuel arrangement started working for us in February 2026, approximately $21.7 million in savings have been realized in just four months,” she told Parliament.
According to the minister, those savings have directly benefited households and businesses.
“This is money that has stayed in the pockets of Bahamian families and businesses, rather than being absorbed by rising energy costs,” she said.
Coleby-Davis also argued that the hedge provides stability beyond residential consumers, extending predictability to commercial operators.
“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 minister framed the fuel hedge as part of a wider structural reform of the energy sector, including regulatory changes and governance restructuring at state-linked utilities.
She pointed to broader reforms in electricity oversight, noting that pricing regulation has been placed under the Independent Regulatory Commission as part of efforts to standardize oversight across the country.
However, the debate quickly shifted from policy explanation to political confrontation when Opposition Leader Michael Pintard challenged the government’s narrative.
Pintard argued that the administration’s energy framework was not entirely original and suggested that elements of its strategy had been drawn from earlier work developed under the former Minnis administration.
“The Minister fails to acknowledge that when we took on government, we had already developed a strategic plan and vision for the energy sector,” Pintard said.
He further alleged that parts of the current reform agenda mirror prior policy documentation.
“A substantial amount of what they are now implementing was lifted from the very same strategic plan,” he told the House.
The Opposition leader also focused on the fuel hedge itself, questioning the government’s decision to discontinue it after 2021 before later reinstating a similar mechanism.
He suggested that the removal of the hedge had negative financial consequences, as the Opposition pressed the government for comparative data.
Coleby-Davis maintained that the current administration’s approach is delivering tangible results and is grounded in active market intervention designed to protect consumers.
She reiterated that the fuel hedge is part of a broader stabilisation strategy, not a standalone measure, and insisted that early savings demonstrate its effectiveness in a volatile global energy market.
“This is a structured intervention to protect Bahamian consumers from global shocks,” she said, emphasizing that the policy is already producing measurable financial relief.
