WILLEMSTAD – Fuel and energy prices in Curaçao will increase in April as global geopolitical tensions continue to impact international oil markets, though the government says the increases remain “under control” for now.
During a government press conference, the Regulatory Authority of Curaçao (RAC) confirmed that gasoline prices will rise by 21 cents, from 1.94 to 2.15 guilders per liter. Diesel will see a much sharper increase of 59 cents, climbing from 1.63 to 2.22 guilders per liter.
The price adjustments reflect recent developments in global energy markets, particularly escalating tensions in the Middle East. The situation has intensified following conflict involving the United States, Israel, and Iran, with disruptions in key oil transit routes such as the Strait of Hormuz—one of the world’s most critical chokepoints for oil supply.
Global ripple effects reach Curaçao
International oil prices have risen sharply in recent weeks due to fears of supply disruptions. Analysts note that even temporary instability in the Strait of Hormuz can significantly impact global fuel costs, as a substantial portion of the world’s oil passes through the region.
For small island economies like Curaçao, which rely heavily on imported fuel, these global shocks are quickly reflected in local prices.
Curoil director Yamil Lasten indicated that the company currently maintains a reserve stock of oil sufficient for approximately two months. He also noted that supply contracts include provisions designed to mitigate sudden disruptions, offering some short-term stability.
Electricity and water also becoming more expensive
In addition to fuel, utility costs are also rising. Electricity tariffs will increase by nearly 4 cents to approximately 0.61 guilders per kWh, while water prices will rise by about 21 cents to 11.15 guilders per cubic meter.
According to RAC director Curt Belfor, these increases must also be viewed in the context of previous investments by Aqualectra in renewable energy projects. Those investments, which include solar energy initiatives, have helped keep tariffs relatively low in recent years despite global cost pressures.
Minister of Traffic, Transport and Urban Planning Charles Cooper confirmed that a large-scale solar energy project is in development, supported in part by Dutch funding. The project is expected to contribute to long-term energy stability and reduce dependence on fossil fuels.
Government seeks to shield vulnerable groups
Prime Minister Gilmar Pisas acknowledged that while current increases are manageable, further price hikes are expected in May if global conditions remain volatile.
In response, the government says it will take measures to protect vulnerable groups, including low-income households, social welfare recipients, and pensioners.
Authorities indicated that part of the strategy will involve using dividend income from government-owned companies to fund support measures aimed at easing the cost-of-living burden.
Balancing short-term pressure with long-term strategy
The latest price increases highlight the delicate balance Curaçao faces between global economic forces and local affordability. While investments in renewable energy are expected to provide relief in the long term, the island remains exposed to fluctuations in global oil markets.
As geopolitical tensions continue to evolve, the coming months will be critical in determining whether price pressures stabilize or intensify further, with direct implications for households and businesses across Curaçao.