By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

PRIME Minister Philip “Brave” Davis said Bahamians need not fear electricity bill increases in the short or medium term despite rising oil prices driven by conflicts in the Middle East.

His comments followed reports of surging oil and gas prices after the United States and Israel waged war on Iran. Some major regional suppliers have halted liquefied natural gas production after their facilities were struck by debris from missile interceptions.

Mr Davis addressed the war’s potential economic impact during his mid-year budget contribution in the House of Assembly yesterday, acknowledging the country’s heavy reliance on imported fuel.

He said any spike in global oil prices directly affects The Bahamas, but noted that safeguards are in place to cushion consumers during periods of volatility.

“Rest assured, we are fully committed to working on behalf of every Bahamian to reduce the cost of electricity and fuel prices,” he said.

Economic Affairs Minister Michael Halkitis recently told reporters the government is taking a wait-and-see approach before considering any revisions to its fiscal plans.

He said officials hope the hostilities will end quickly, but warned that any prolonged disruption to regional oil supplies could raise costs across the import-dependent Bahamian economy.

Concerning the government’s electricity reform, Mr Davis said the changes are delivering results.

He said 82 percent of BPL customers — about 78,000 households — are paying lower bills due to the equity rate adjustment.

Of those, 44 percent saw reductions of at least 15 percent, while more than 63,000 households now receive monthly bills under $125.

“For those who had fallen behind, we did not simply look away,” he said, adding that  2,811 disconnected households were reconnected between November 2024 and January 2025. “Lower bills matter. But reliability matters just as much. Because what good is affordable electricity that is not there when you need it?”

He said power outage frequency fell by about 45 percent last year while outage duration dropped by 35 percent.