Regulatory Authority at odds with minister over fuel prices
Licensed fuel importers were effectively given the green light by the Regulatory Authority to increase prices despite a ministerial directive that instructed the overseer to put a cap on charges for six months, the Government said this evening.
An emergency meeting was held yesterday, it was revealed, and the RA has been asked to reconsider its position.
Alexa Lightbourne, the home affairs minister, insisted that “every lawful mechanism” would be used to shield Bermudians from higher living costs.
She formally directed the RA on Wednesday to implement a “standstill ceiling” based on “the retail price prevailing immediately”, with the order specifying that no “licensed importer, wholesaler or retailer” would be permitted to charge above the threshold, effective for the next six months.
A government spokeswoman said this evening: “At the same time, the Ministry of Finance advised that it would offer a customs duty relief measure, building on the approach used successfully in 2022 when fuel prices were last frozen.
“This is intended to ensure that licensed fuel importers and retailers are not affected while fuel prices are frozen.
“In other words, the Government will cover any verified revenue shortfall for licensed importers during this period.”
Ms Lightbourne said last month — as the island monitored the impact of the Middle East conflict on global oil markets — that the Government would work with the RA, which oversees fuel pricing, electricity tariffs and consumer protection, and other stakeholders to safeguard affordability.
The spokeswoman said today: “Despite this co-ordinated action from the Government, fuel prices were increased after a communication from the RA to licensed importers, which effectively gave them the go-ahead to increase prices.”
She added that the Government met with the RA commissioners and executive team yesterday to discuss any concerns.
The spokeswoman said that Ms Lightbourne wrote to the authority and its board today, asking them to reconsider the communication that paved the way for fuel price increases.
She added: “The matter now rests with the Regulatory Authority board.
“The ministry has also asked the Regulatory Authority to make its decision public and trusts that the board will act in the public interest at a time when many families and businesses are already feeling financial pressure.
Ms Lightbourne said: “The ministry will use every lawful mechanism available to prevent price increases and to protect Bermudian households from higher living costs.”
The Royal Gazette has contacted the RA for comment.
• To see Ms Lightbourne’s letter in full, see “Related Media”
You must be Registered or to post comment or to vote.
