Understanding Fuel Procurement in Bermuda

Fuel procurement is critical in powering Bermuda’s economy and supporting daily life. However, because Bermuda does not produce its own fossil fuels, all fuel, such as gasoline, diesel, and heavy fuel oil, must be imported. These fuels are essential for transportation, electricity generation, and various commercial activities.

Unlike some of our Caribbean neighbours, Bermuda’s isolated geographical location makes it more challenging to share transportation costs with nearby countries. This means fuel importation is more expensive, and the island is more exposed to global market conditions. Imported fuel is delivered by specialised tankers and stored in secure facilities before being distributed locally. To help maintain a consistent supply, Bermuda’s fuel providers enter into long-term agreements with overseas suppliers.

The Regulatory Authority of Bermuda (RA) oversees key aspects of the energy sector to promote fair practices and safeguard the security of supply. Because Bermuda depends entirely on imported fuel, any changes in international oil prices or disruptions in global supply chains can directly affect the cost of electricity and fuel on the island. This is why energy diversification and long-term sustainability planning are so important. The RA continues to support the transition to cleaner energy sources, with the goal of maintaining a reliable and affordable supply for all consumers.

Understanding the mechanics behind fuel procurement offers valuable context for the realities of Bermuda’s energy landscape. It reflects the broader considerations at play, global markets, logistical challenges, and long-term planning that shape the cost and reliability of our local energy supply.

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