Opposition Calls for Explanation on Unchanged Petrol Prices Amid Falling Global Oil Prices

The Opposition Democratic Labour Party (DLP) has called on Minister of Energy Senator Lisa Cummins to explain to Barbadians why petrol prices have remained unchanged for an entire year, while world oil prices fall.

Opposition spokesman on energy, Senator Ryan Walters, marked Tuesday as a full year since the last adjustment in the price of gasoline and diesel at the pump.

“It has been 365 days since fuel prices have changed,” Senator Walters said. “Since September 2023, we have not benefitted from the global reduction in the price of a barrel of oil. The global cost is one of the main determining factors influencing our price fluctuations and what we must pay at the pump.”

The opposition spokesman pointed to the Brent Crude Oil Price, a widely used benchmark, which has shown a reduction in oil prices globally when compared to September 2023. He also highlighted a decline in the imported cost of Heavy Fuel Oil, as reflected in the Fuel Clause Adjustment (FCA) on the Barbados Light and Power Company’s website.

The FCA, which adjusts electricity prices based on the cost of fuel, has shown periodic reductions post-September 2023.

Senator Walters argued that the monthly FCA calculations from October 2023 to June 2024 were consistently lower than those of September 2023, with decreases ranging from 17 per cent to 26 per cent. On average, he noted, the FCA was 18 per cent below the September 2023 level over the last nine months.

“If this information is any indication of what one could expect with the price of gasoline and diesel, consumers should have seen declines at the pump a long time ago,” he asserted.

The opposition senator emphasised that consumers should benefit from the global reduction in oil prices, calling for an immediate drop in petrol prices.

“Consumers deserve better. We demand not only a response to this issue, but also concurrent action resulting in an ease at the pumps,” he declared.

Senator Walters further argued that the high cost of fuel has placed a significant burden on small and medium-sized businesses that rely heavily on fuel for their operations.

“A year is too long, and the fuel prices are too high. This is a burden felt by all of us,” he stressed.

The opposition legislator reminded Senator Cummins of her duty as a policymaker to address issues of grave concern and to advocate for policies that advance the well-being of citizens and sectors, rather than “cripple” them.

Barbados TODAY has reached out to the energy minister for comment.