PSOJ urges Jamaica to take immediate action to protect consumers amid emerging energy crisis
KINGSTON, Jamaica — With global oil prices rising amid renewed geopolitical tensions and supply disruptions, the Private Sector Organisation of Jamaica (PSOJ) is urging Jamaica to act decisively and immediately to shield consumers and businesses from the impact of a looming energy crisis.
“Recent disruptions in the Strait of Hormuz and related export restrictions have pushed oil prices near US$100/barrel. The IMF (International Monetary Fund) warns that the Middle East war could slow global growth (projected 3.1 per cent in 2026) and push inflation up in the near term. Jamaica remains highly dependent on imported fossil fuels (80 per cent), leaving the country exposed to price spikes and supply risk,” the PSOJ said in a media release.
The organisation is now calling for Jamaica to buffer itself from what it described as an “energy tsunami” by:
— Publishing the 2024–2050 energy policy (even as a draft) and launching inclusive public consultations immediately to give clear signals to investors and households;
— Fast-tracking residential and commercial net-billing reforms: cut red tape, reduce costs, raise net-billing thresholds, and mandate battery installation with new systems;
— Resolving delays in the 100 MW renewable bid and applying lessons to the current 200 MW RFP to accelerate deployment;
— Consulting broadly on the new electricity license and sector transformation to lower tariffs and attract investment; and
— Temporarily reducing or eliminating import duties on all electric vehicles for up to two years and partnering with the private sector on a public education campaign to speed EV (electric vehicle) adoption.
The PSOJ said with this approach, rapid shift to more national energy sources, enabling an environment for investments, improved government efficiencies for implementation, the goal of 50 per cent renewables by 2030, lower electricity prices and energy security are achievable.
It said while inflation is projected to rise modestly in 2026 before resuming its decline in 2027, emerging markets and developing economies such as Jamaica’s, are particularly at risk for declining energy security, if the appropriate action is not taken swiftly.
“To allow this moment to pass without decisive action would be a missed national opportunity. This emerging crisis, though familiar in form, presents a critical window for Jamaica to strengthen its energy resilience, advance sustainability and diversify its energy mix. The responsibility now rests with the nation to act with urgency and purpose, transforming present challenges into a foundation for long-term security and growth,” the PSOJ said.