ROSEAU, Dominica (CMC)—The Dominica government on Wednesday said it will be taking measures to cushion the impact of the ongoing war in the Middle East, acknowledging that events thousands of miles away will significantly affect the price of fuel, the cost of food, the stability of jobs, and the strength of the local economy.

“Let me be clear, Dominica is not in danger of war, but we are exposed to the economic aftershocks of this conflict that has already caused the largest supply disruption in the history of global oil markets,” Dominica’s Prime Minister Roosevelt Skerrit told a news conference.

He said the most immediate risk facing Dominica is a sharp increase in global oil prices.

“We import all of our fuel and high oil prices, and of course, it will affect electricity costs, transportation, and the price of goods and services across our economy. We face rising costs of imported food and essential supplies, as global shipping routes and supply chains experience disruption,” said Skerrit.

The prime minister said at the same time, there may be a slowdown in global travel and investment, which could affect tourism and inflows into the local economy.

“Your government has not waited for the situation to worsen. We are actively and decisively working to protect the people of Dominica. Over the coming days and weeks, we will implement a series of targeted measures designed to cushion the impact on households and businesses,” he added.

Skerrit said the government will first introduce targeted relief measures to help manage the rising cost of living, saying “this will include temporary reductions on duties and taxes on essential goods, and increased support for vulnerable households through our social protection programmes”.

He said the government would also be taking steps to manage energy costs and would work closely with the Dominica Electricity Services to moderate the impact of rising fuel prices on electricity cost.

He told reporters that Dominica is fortunate that its geothermal energy is coming on stream “just at the opportune time,” with the plant in Laudat in the Roseau Valley on the outskirts of the capital, “making good progress and …now in an advanced stage of testing.

Skerrit said the government will also seek to cushion the impact of the war by protecting jobs and economic activity.

“We will engage with stakeholders in tourism, agriculture, and the private sector to ensure continuity and resilience during this period,” he said, adding that Dominica is also strengthening its fiscal management,” carefully prioritising government spending to ensure that critical services are maintained while some discretionary expenditures are deferred.

Skerrit said he understands the anxiety that rising prices can bring and the pressure that families may feel in the weeks ahead, “but I ask you to remain calm, to remain united and to remain confident in our ability to weather the economic fallout from the escalating conflict in the Middle East.

“Dominica has faced far greater challenges before, from hurricanes to global pandemics, and we have emerged stronger each time,” he added.