‘Something has to happen’: Jamaican gov’t may consider movement restrictions amid fuel crisis

Jamaica’s Energy and Transport Minister Daryl Vaz is warning Jamaicans to prepare for fuel price increases and possible movement-reduction measures as rising global oil prices place growing pressure on the Government of Jamaica.

Vaz said the Government is now exploring options to encourage conservation, including a potential return to hybrid work-from-home arrangements similar to those used during the COVID-19 pandemic. No decision has yet been made, and the matter is expected to go before the Cabinet of Jamaica.

The discussion comes as state-owned refinery Petrojam absorbed approximately J$1.3 billion in oil price hikes that were not passed on to consumers in the last four weeks. If the price pressures persist up to June 2026, it would cost the government J$11.8 billion to absorb the increases.

Vaz described the situation as unsustainable, warning that Jamaicans should expect further increases.

“Let me be blatantly, truthfully, up front, in your face. The government of Jamaica cannot stomach J$11.8 billion with all of what we have to do and the contending priorities. And anybody who tell you any different, I’m sure they will, after this press conference. Rubbish. No government in a situation like this can sustain that,” Vaz said.

“So my words to you, Jamaica, is definitively you are going to see increases as long as this continues. We will do what we can do. But it is important that you do what you need to do to understand that you need to conserve, starting today, today, today.”

Fuel pricing cap under pressure

Currently, Petrojam limits weekly fuel price adjustments to a maximum increase or decrease of $4.50 per litre — a measure designed to shield consumers from sudden spikes.

However, Vaz indicated that the cap is no longer sustainable given current global conditions.

“It means that the $4.50 cap cannot be sustained. And it means that we’ll have to have several different tiers of caps, probably three, that will speak to what’s happening in the market. And as I said, the pricing is weekly. So it means that we can adjust on a weekly basis,” he said.

Vaz noted that between March 12 and April 8, transport fuel prices increased by an average of $49.20 per litre. Of that amount, only $18 was passed on to consumers because of the cap, leaving Petrojam to absorb the remainder.

He said oil prices have climbed from about US$70 per barrel before the conflict to roughly US$100, highlighting the volatility of the global market.

“That is, in fact, two-thirds of this budget year’s revenue measures. You have to understand the magnitude of the impact of the war on Jamaica. This level of support is not sustainable indefinitely, especially in a prolonged high-price environment,” Vaz added.

Movement restrictions may be considered

Vaz also suggested that policy changes aimed at reducing fuel consumption may be necessary.

“Government is going to have to look at policies to limit movements, especially transportation movements. I don’t know, Minister [Dana] Dixon, I don’t know whether or not go back to a COVID hybrid version of working from home. But something has to happen because the level of traffic that I’m seeing on the road doesn’t show me that anybody realises that there’s a war and the price of fuel and oil is just continuing to go up and up and up,” he said.

He added that Cabinet will examine possible conservation strategies.

“So I’m sure that cabinet will deliberate and the government will come up with plans as to how to conserve. But it is 100% the responsibility of every Jamaican to realise that we are in a major, major, major crisis as it relates to the price of oil internationally. And therefore, you need to take responsibility for your household and your business to see what you can do.”

No supply shortage, Minister Vaz says

Despite rising costs, Vaz stressed that Jamaica’s fuel supply remains secure.

“So despite the global market volatility, Jamaica’s energy security remains intact, supported by established finished product supply contracts and local refining capacity at Petrojam. So it’s not a matter of not being able to buy. It’s the price. So there’s no need to panic.”

However, he reiterated that conservation efforts must begin immediately as Jamaica navigates the ongoing global energy crisis.