Jamaicans could be facing even higher prices after the Government removed the cap on weekly fuel price movements..

The cap, previously set at J$4.50 per litre, had limited how much gas prices could rise or fall each week. Its removal means fuel costs will now move more freely in line with global oil markets, particularly during periods of geopolitical instability.

According to Energy Minister, Daryl Vaz, the policy change was driven largely by mounting losses at Petrojam, which had been absorbing increases to shield consumers. In recent weeks alone, the state-owned refinery took on roughly J$1.4 billion in costs that were not passed on, with projections suggesting losses could have surged to J$11.8 billion by June if the cap remained in place.

Taking Stock analyst David Rose, speaking on Taking Stock with Kalilah Reynolds, said the move signals a permanent shift in how fuel prices are handled.

“It’s basically a new standard… more responsive and reactive to the actual market changes,” Rose said.

For consumers, that responsiveness could translate into sharper increases at the pump, especially during global supply shocks. The impact is expected to extend well beyond fuel.

Higher gas and diesel prices are likely to push up transportation and electricity costs, while manufacturers dependent on energy inputs may raise prices to offset rising expenses. “Manufacturers… are going to increase the price of their products because they have to account for the increased production cost,” Rose explained.

The broader economic effects could also be significant. Rose pointed to pressures on tourism, with airlines already cutting routes and raising costs due to fuel prices, potentially reducing visitor arrivals. Sectors like construction and agriculture may also face higher input costs, contributing to further inflation.

Ultimately, while the removal of the cap exposes Jamaicans more directly to global oil price swings, the Government argues it was necessary to prevent unsustainable financial strain on Petrojam and to create a more realistic, market-driven pricing system.