Energy minister: Oil price surge demands ‘vigilance, policy interventions’

Minister of Energy Kerrie Symmonds on Friday announced a sweeping $81 million plan to strengthen economic resilience as the ongoing war in the Middle East continues to affect global energy prices while boosting various industries. 

 

Symmonds highlighted the development as he sought parliamentary approval for an allocation of $81 121 253 for the Ministry of Energy, Business Development and Commerce.

 

Speaking in the well of Parliament on Friday, Symmonds detailed how these funds are earmarked for six core operational divisions: Energy and Natural Resources, Microenterprise Development, Cooperative Development, Utilities Regulation, Commerce and Consumer Affairs, and Private Sector Enhancement.

 

A significant portion of Symmonds’ appearance before fellow MPs focused on what he described as urgent challenges to the energy industry.  

 

Despite Barbados’ ongoing efforts to pivot towards renewable energy, the nation remains reliant on fossil fuel imports and projects a nine-year transition period to reach its long-term energy goals, he said.

 

The minister highlighted the impact of the ongoing US–Iran conflict on global oil prices, noting a sharp increase in costs over the past week — with Brent North Sea crude rising from approximately US$68 to $84 per barrel.

 

“It is a matter of elementary mathematics to recognise that world prices have moved to the tune of 16 to 24 per cent,” the minister said, emphasising the need for eternal vigilance and strategic policy interventions.

 

International traders are concerned that the conflict could lead to the closure of the Strait of Hormuz, effectively choking off a large percentage of global daily oil exports. And as Brent crude rises, so too do the costs of transporting goods, generating electricity, and refining fuel worldwide.  

 

For Barbados, which is heavily reliant on imports, this is felt almost immediately at the pump and in the cost of imported goods.

 

To address these vulnerabilities, the government is prioritising enhanced storage capacity to buffer against market shocks, along with diversifying supply contracts to ensure flexibility, Symmonds said. Additionally, the government is pursuing a “multi-energy” policy that balances traditional oil and gas needs with low-carbon technologies and the aggressive expansion of renewable energy, including new investments in onshore and offshore wind.

 

Beyond energy, the minister outlined key initiatives aimed at fostering inclusive economic growth. The government intends to raise the trust fund ceiling from $10 000 to $20 000 to better support small businesses and vendors.  

 

Alongside this, there is a major push for financial literacy to ensure that everyday Barbadians are equipped to participate in the growing economy. He highlighted that financial literacy booklets will be distributed, stressing that economic transformation is impossible without educating the public on financial management.

 

Officials are also prioritising regulatory reforms, specifically the implementation of an “electronic single window” and a “collateral registry” intended to streamline business operations and improve access to finance.

 

By focusing on cooperatives, diversifying services in the larger business sector, and committing to these legislative and policy interventions, Symmonds argued that the administration is poised to drive meaningful, transformative progress for Barbados.

 

“If we can get this right, it is an opportunity not only to reset the Barbados economy but to make substantial transformational steps forward,” the minister said.