Middle East Oil Shock Pushes Caribbean Power and Travel Costs Higher
Brent near US$115 is feeding straight into electricity, aviation and hotel costs across import-dependent island economies.
The closure of the Strait of Hormuz and wider Middle East conflict have driven Brent crude to around US$115 a barrel, and the Caribbean — home to some of the highest electricity costs in the hemisphere because of its dependence on imported oil — is absorbing the shock. Governments are responding unevenly: Barbados has hedged fuel and capped fuel taxes, Belize is taking the hit almost directly with no domestic production, and tourism-reliant economies from The Bahamas to the Eastern Caribbean face rising operating costs. The episode is a live test of how small, energy-importing states protect households and travel demand through a global price spike.
Source: World Bank; Travel And Tour World; OilPrice.com.