by Kevon Browne
St. Kitts and Nevis (WINN)—Global gas and fuel prices will remain high and volatile through the summer of 2026, driven primarily by conflicts in the Middle East, supply chain bottlenecks in the Strait of Hormuz, and peak summer driving demand.
Historically, governments have released emergency strategic oil supplies to stabilise prices, but these reserves have been heavily drawn down in recent years, limiting future mitigation options.
At local pumps, consumers are paying around EC$18 per gallon, even with government relief measures that slashed the excise tax on gas by 50%, effective through July 31, 2026.
The volatility of gas prices is expected to continue through the summer, amid the ongoing conflict and repeated failed attempts at peace negotiations.
Alternative energy sources, such as solar, wind, and geothermal, are more important than ever, given the volatility of global gas prices.
Premier of Nevis, Hon. Mark Brantley, provided an update on the current status of the Geothermal project on Nevis.
“We are doing a number of things we’re setting up a dedicated geothermal unit within the government which will exclusively you know how should I say focus on geothermal. We have had some meetings already with Icelandic drilling in fact they have already selected persons to move to the island to be physically here. They have anticipated they I think the date they’ve suggested to us is the month of August when they hope that they can mobilise but we have a number of things to do including finalising the acquisition of some lands in the area from some landowners there so we want to get that done quickly. I would want everybody all the stakeholders to understand that while the government is pushing this project this is a project for all of us it’s a project that will benefit all of Nevis and so I really want our people to respond and be able to work together in a collaborative fashion to bring this project forward.”
The Premier shares that discussion with the Caribbean Development Bank to release funds so that the contracted company, Iceland Drilling, can commence substantial work.
“We are making good strides. I was in touch with the president of the Caribbean Development Bank just last night (May 25, 2026) to mobilise and see how we can ensure that funds start to flow so that we can get what we need done. So, I’m very happy that we are well within striking distance on the geothermal project for the first time in many many years we can say that we can see that light at the end of the tunnel.”
Following the start of the multi-well drilling campaign, officials estimate that the power plant could be fully operational within roughly 2 to 2.5 years.
Concerns over global fuel prices continue to hit people’s pockets in various ways, including in the tourism sector.
Despite high fuel costs, travel demand remains robust for the summer.
However, consumers are altering their behaviour by taking shorter road trips, using low-cost carriers more often, and relying more on credit card financing for travel.
High gas and oil prices directly reduce Caribbean tourist spending power by inflating the cost of airfare, cruise packages, and ground transportation, leaving visitors with smaller discretionary budgets for accommodations, dining, and excursions once they arrive.
Cruise operators are prioritising high-yield ports and shortening itineraries to reduce marine fuel consumption, which shifts economic benefits away from secondary or smaller ports that rely heavily on fluctuating visitor traffic.
