AMENDMENT TO GNO365/2026 DIRECTION TO THE REGULATORY AUTHORITY ON THE RETAIL FUELS PRICE CAP

April 14, 2026

Regulatory Authority of Bermuda 1st Floor, Craig Appin House

8 Wesley Street

Hamilton HM 11 Bermuda

Attention: Mr. Mark Fields, Chairman of the Board of Commissioners

Dear Mr. Fields,

Re: Direction to the Regulatory Authority on the Retail Fuels Price Cap

WHEREAS the Regulatory Authority Act 2011 (the “RAA”) empowers the Minister under section 7 to issue general policy directions to the Regulatory Authority (the “Authority”); and the Fuels Act 2022 (the “FA”) empowers the Minister under section 7 to issue general policy directions to the Authority on matters of general policy concerning the fuels sector;

AND WHEREAS the Minister has, in accordance with section 7(1) of the FA, consulted the Authority in respect of this Direction;

AND WHEREAS the Transitional Fuels Pricing Interim General Determination 2025 (Matter 20231229, 6 February 2025) lapsed on or about 6 August 2025 by its own terms and no successor interim or final general determination is known to the Minister to be presently in force; and the Minister, having regard to that regulatory gap, to the absence of a completed regulatory-impact analysis, and to the protection of public interest under section 10(3) of the FA, considers that any upward adjustment of retail fuel prices during the transitional period would be premature;

AND WHEREAS the Premier has agreed in principle that the Ministry of Finance shall provide targeted customs-duty relief to licensed importers sufficient to offset any verified revenue shortfall arising from compliance with this Direction, such that the arrangement constitutes reasonable regulation of property with compensation for the purposes of any constitutional or other rights;

NOW THEREFORE, the Minister of Home Affairs, in exercise of the powers conferred by

section 7 of the RAA and section 7 of the FA and all other enabling powers, hereby issues the following Direction:

DIRECTION

1. Citation and Duration
2. This Direction may be cited as the Retail Fuels (Consumer Protection Standstill) Ministerial Direction 2026.

2. It takes effect on publication in the Official Gazette and remains in force for six (6) months unless earlier revoked or superseded by a final general determination of the Authority.
3. Policy Standstill on Upward Retail Fuel Prices
4. During the effective period of this Direction, it is the general policy of the Government, with which the Authority is directed to act consistently, that no increase in retail fuel prices above the Standstill Ceiling set out in clause 3 shall take effect during the period of this Direction.
5. No determination, schedule, arrangement, scheme, decision, or other instrument, howsoever made or issued, shall be treated as authorising, permitting, endorsing, adopting, or otherwise giving effect to any increase in retail fuel prices above the Standstill Ceiling set out in clause 3; and no licensed importer, wholesaler, or retailer shall rely on any such determination, schedule, arrangement, scheme, decision, or instrument to charge a retail price exceeding the Standstill Ceiling during the effective period of this Direction.
6. No licensed importer, wholesaler, or retailer shall charge a retail price exceeding the Standstill Ceiling. Any price schedule, invoice, tariff, or consumer-facing communication purporting to implement an increase above the Standstill Ceiling shall be without lawful basis for the purposes of sections 62 and 66 and Part 6 of the RAA.
7. The standstill in this clause is lifted only when, and to the extent that, the Authority has issued the fresh interim general determination under clause 4 incorporating the Standstill Ceiling (clause 3) and the Customs-Duty Relief Arrangement (clause 5).
8. Standstill Ceiling
9. The maximum retail price of each regulated fuel during the effective period of this Direction shall be the lower of: (a) the unit-cost-based price supported by the Authority's own cost-of-service analysis; or (b) the retail price prevailing immediately (the "Standstill Ceiling"), as set out in Schedule 1.
10. No licensed importer, wholesaler, or retailer shall charge a retail price exceeding the Standstill Ceiling. Downward adjustments are permitted at any time.
11. Fresh Interim General Determination

1. The Authority is invited in exercise of its independent functions under section 29 of the FA to issue a fresh interim general determination under section 29 of the RAA and section 29 of the FA, on an expedited basis, and no later than thirty (30) days from receipt of this Direction, which shall: (a) adopt the Standstill Ceiling in clause 3; (b) replicate the substance of section 9 of the lapsed IGD 2025 (endorsement of arrangement or scheme); and (c) record the Customs-Duty Relief Arrangement in clause 5 as an endorsed scheme.
2. Within three (3) days of receipt of this Direction, the Authority is requested to confirm in writing to the Minister, with copies to the Cabinet Secretary and the Attorney-General, the instrument (if any) under which any upward retail fuel price adjustment is said to be given effect on or after the commencement of this Direction.
3. Customs-Duty Relief (the “Customs-Duty Relief Arrangement”)
4. The Ministry of Finance shall make available targeted customs-duty relief to licensed importers in an amount calculated to offset any verified revenue shortfall demonstrably attributable to compliance with the Standstill Ceiling.
5. The Authority is invited to give effect to the Customs-Duty Relief Arrangement as an endorsed scheme within the fresh interim general determination under clause 4, specifying the methodology for quantifying shortfall, the substantiation and audit process, and the interface with the Finance customs-relief instrument.
6. Pending issuance of that determination, the Authority and the Ministry of Finance may operate the Customs-Duty Relief Arrangement administratively, subject to reconciliation and ratification once formally endorsed.
7. Reporting, Interpretation and Severability
8. The Authority is invited to report to the Minister by the end of the third month on compliance, claims paid under the Customs-Duty Relief Arrangement, and progress toward a final pricing methodology.
9. This Direction is made under and to be read with section 7 of the RAA and section 7 of the FA, and is without prejudice to the Cost-of-Living Commission Act 1974.
10. If any provision is held ultra vires or unenforceable, that provision shall be severed and the remainder shall continue in full force and effect, save that clause 3 (the Standstill Ceiling) shall be treated as the minimum core of this Direction and shall continue irrespective of the severance of any other provision.

Sincerely,

The Hon. Alexa Lightbourne, JP, MP Minister of Home Affairs