The Opposition is calling on the Government to act now as global oil prices rise due to conflict in the Middle East. Fuel prices around the world are already climbing, and if nothing is done, Bahamian families will soon feel it at the pump and in their electricity bills.
We are calling for immediate, practical steps to protect Bahamians.
First, the Government should immediately impose a short-term cap the VAT charged on fuel. This approach was used successfully in Barbados during a similar global oil spike.
Under this model, VAT would only be charged up to the current average pump price on each island. If global prices push fuel higher than that level, VAT would not be charged on the increase. This protects consumers from sudden price jumps while allowing the Government to maintain its planned revenue.
The Government should not collect extra VAT revenue simply because global oil prices rise. The Government must act now to protect Bahamian families, consumers, and businesses from rising costs.
Second, the Government should immediately raise the VAT-free electricity threshold from $400 to $600 for residential customers.
If global oil prices increase, fuel surcharges on power bills will rise. Raising the threshold now gives families breathing room before bills climb higher. This is a temporary measure to cushion households during a global price surge and protects the government’s revenue base.
We insist that the Government table the necessary legislative amendments in Parliament immediately. Delay serves no one, and every day of inaction increases the likelihood of households falling behind on bills, small businesses facing higher costs, and inflation worsening across the country.
The Opposition will support responsible measures that protect Bahamian families while maintaining fiscal discipline. What we will not support is inaction.
The time to act is now, before prices rise again for Bahamian households.
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