The Government could consider capping fuel prices if the situation warranted it, the Home Affairs Minister said tonight.

Alexa Lightbourne, who is tasked with managing the cost of living said the Government was monitoring fuel prices, which have soared as a result of the war on Iraq.

“When Bermuda last faced a global fuel price spike, this Government acted swiftly to cap the price of fuel to protect consumers and we will not hesitate to consider that option again if the situation warrants it,” she said.

“The ministry will continue to work closely with the Regulatory Authority and industry stakeholders to safeguard affordability and keep the public informed as the situation develops.”

Oil prices have risen from around $75 a barrel on March 4 to as high as $116 on Monday due to concerns about oil shortages as a result of shipping being blocked in the Persian Gulf. It was trading today at around $85.

Ms Lightbourne said the Government understood the concern the rising price of fuel caused for families and businesses.

“The regulation of Bermuda's energy and fuel sectors falls under the RA, which has independent statutory responsibility for overseeing electricity tariffs, fuel pricing and consumer protection,” she said.

She added that retail fuel prices were reviewed monthly and electricity costs adjusted every quarter through the Fuel Adjustment Rate and that her ministry had been briefed by the RA on the current market situation.