Middle East Tensions Push Fuel Prices Up Across the Caribbean

• Rising tensions and conflict involving the United States (U.S.) and Iran have disrupted global oil markets, particularly around the Strait of Hormuz, a key route for about 20% of the world’s oil supply. The uncertainty has pushed up international fuel prices, forcing some Caribbean governments to absorb the increases to shield consumers.
• In the Dominican Republic, the government announced a RD$5 per gallon increase for gasoline and diesel for the week of March 14–20, with premium gasoline set at RD$295.10 and regular gasoline at RD$277.50. Diesel prices also rose while Liquefied Petroleum Gas (LPG) remained unchanged, as authorities allocated RD$1.19Bn in subsidies to prevent even sharper increases driven by global oil market tensions.
• For Guyana, fuel prices have risen sharply at private service stations across Georgetown, with gasoline climbing by at least $15 per litre to as high as $195 for gasoline and $200 for diesel in some locations. However, the state-owned Guyana Oil Company Limited has kept its prices stable at $170 per litre for gasoline and $190 for diesel, aiming to protect consumers from market volatility. Authorities also noted that stability is possible as the government continues to maintain a zero per cent excise tax on petroleum products. This measure was initially announced by Finance Minister Ashni Singh during the presentation of the 2026 Budget and costs the state about $100Bn in foregone revenue annually, but helps prevent global oil price shocks from fully hitting consumers.
• Meanwhile, in Antigua and Barbuda, Prime Minister Gaston Browne noted that the government of Antigua and Barbuda is absorbing part of the global fuel price increase by reducing fuel consumption taxes. As a result, gasoline prices have been held steady at EC$14.25 per imperial gallon, even though the West Indies Oil Company confirmed that recent fuel shipments arrived at significantly higher global prices. Nevertheless, Browne warned that higher international fuel costs typically raise the price of transportation, groceries, and other imports, but the government is continuing to cushion consumers for now, despite the fiscal pressure and previous losses from earlier price spikes linked to global conflicts.
• As tensions around the Strait of Hormuz squeeze global oil supplies, countries like the Dominican Republic are passing on modest increases at the pump, while Antigua and Barbuda and Guyana are leaning on tax cuts and state controls to soften the blow, highlighting different strategies across the region to shield households from a surge in global energy prices.

(Sources: Kaieteur News, Dominican Today, Trinidad Express Newspapers   & NCBCM Research)