NASSAU, BAHAMAS — Bahamian motorists are feeling the squeeze as fuel prices at Esso stations climb from $5.56 to $6.58 per gallon — an increase of roughly 18 percent — as global oil markets react to the ongoing Iran conflict.
Esso/Sol Petroleum is one of the major fuel providers in The Bahamas, and its price adjustment is expected to ripple through the market.
Vasco Bastian, vice president of the Bahamas Petroleum Retailers Association, told Eyewitness News that other wholesalers are likely to follow within days.
The surge is being driven by rising global oil prices, with Brent crude — the world’s primary oil benchmark — now trading around $110 to $116 per barrel as the conflict involving Iran, Israel, and the United States enters its fifth week.
The impact is spreading beyond the pumps.
Shipping costs are also rising sharply, with Tropical Shipping confirming major bunker surcharge increases effective April 12 for shipments between North America and The Bahamas.
According to a notice published on its website, the company said the move is “in response to the volatility in global fuel costs” and to “continue providing the highest quality, on-time shipping services.” Tropical added that the increase will be reviewed on April 2 and again on April 9 to ensure it reflects current fuel market conditions, noting the adjustment is necessary “to protect the integrity of our service and support the stability of the Caribbean supply chain.”
Under the revised rates, a 20 ft dry equipment container will increase from $100 to $350, while a 40 ft dry equipment container will rise from $200 to $700. A 40 ft reefer equipment container will jump from $320 to $1,120.
The aviation sector is also feeling the pressure. Bahamasair is applying a fuel surcharge to reflect a roughly 55 percent increase in jet fuel prices, Managing Director Tracy Cooper previously told Eyewitness News. The airline is spreading the added cost across passengers rather than increasing base fares, allowing the surcharge to be removed once fuel prices stabilize.
Western Air is taking a similar approach. President and CEO Sherrexcia Rolle previously told Eyewitness News that passengers will see minimal changes through a fuel surcharge as the airline continues to monitor oil price movements.
For The Bahamas, where the majority of goods arrive by sea and domestic travel depends heavily on air transport, the combined effect is significant. Rising fuel costs are feeding into shipping, travel, and the broader cost of living.
Consumers can expect higher prices on imported goods, including food and construction materials, while businesses face mounting operating expenses.
Still, there may be some relief ahead. Prime Minister Philip Davis has stated that electricity bills are not expected to increase in the short to medium term despite rising global oil prices, as the government continues to engage energy partners and manage the impact.
Additionally, effective April 1, 2026, the government will remove VAT on all unprepared food items, reducing the rate from 5 percent to zero. The measure is aimed at easing cost-of-living pressures by targeting staple items such as fresh produce, meats, and baby food, though prepared and deli foods are excluded.
