Oil Spikes to $115 a Barrel, Already Driving Up Gas and Electric Bills in Puerto Rico

The price of crude oil jumped from $66 to $115 a barrel in a matter of weeks after the partial closure of the Strait of Hormuz amid the conflict between the United States and Iran, a 74% spike already hitting gas pumps and electric bills for thousands of Puerto Rican households. ¹ According to the Center for Economic Renewal, Growth and Excellence (CRECE), the jump even surpasses the oil shock triggered by Russia's 2022 invasion of Ukraine. ¹

The Strait of Hormuz, the maritime route through which roughly 20% of the world's oil passes, came under threat of closure following the latest incidents between U.S. and Iranian forces in the area. Although ships have resumed passing through the strait in recent days, military tension between the two countries has not ended, keeping global crude markets on edge -- and, by extension, an island that depends almost entirely on imported fuel. ¹

Gabriel Capella, a research associate at CRECE, explained that Puerto Rico is facing a global price shock layered on top of local energy fragility, since 93% of the island's electric generation capacity depends on fossil fuels. ¹ That dependence is why a spike in the international market translates almost immediately into higher costs at the pump and on the power bill for Puerto Rican consumers.

The numbers are already tangible. According to the latest monitoring by the Department of Consumer Affairs (DACO), as of September 21 regular gasoline was selling between $1.16 and $1.19 per liter (about $4.39 to $4.50 a gallon), premium between $1.30 and $1.37 per liter, and diesel between $1.49 and $1.53 per liter (roughly $5.64 to $5.79 a gallon). ² That's up from mid-August, when regular gas hovered between $1.02 and $1.06 per liter, according to figures the Gasoline Retailers Association confirmed in mid-September. ³ Metro Puerto Rico estimates that since the oil shock began this year, gasoline prices have risen between 50% and 60%, while the electric rate has climbed roughly 20%. ¹

The impact isn't limited to the gas tank. Retail sales grew just 1% this year, far below the 3% to 5% considered healthy growth, and the restaurant sector is under pressure from consumers' reduced purchasing power. ¹ Inflation, which was already close to 5% in May, remains elevated. ¹ Capella warned that every $30 increase in the price per barrel costs Puerto Rico's economy more than $1 billion a year in imported fuel, a cost spread across households, businesses and the government. ¹

There's also a fiscal angle: the so-called "crudita" tax on petroleum products generates roughly $500 million a year for the General Fund, meaning sustained higher fuel consumption can mean more revenue for the government even as families pay more at the pump -- a contrast fiscal analysts, including former Treasury Secretary Francisco Pares, have flagged as part of the broader debate over how Puerto Rico manages oil-price swings. ¹

Alongside this picture, a rumor circulated this week of a truckers' strike in Puerto Rico from October 1 to 7 demanding better hauling rates in the face of rising diesel costs. On September 23, Carlos Rodriguez, coordinator of the Frente Amplio de Camioneros, denied it: "That's in the United States," he clarified, noting that the strike call circulating on social media refers to organizations on the U.S. mainland, not Puerto Rico. ⁴

What this means for you

If you drive daily, filling a 15-gallon tank of regular gasoline today costs between $66 and $68 -- several dollars more than a month ago. For anyone running a transport, distribution or delivery business, pricier diesel translates into costlier freight that eventually shows up in prices, from the supermarket to the corner restaurant. On the power bill, a 20% rate increase can mean an extra $20 to $40 a month for an average household, depending on usage. And with inflation holding near 5%, household budgets will keep stretching further than paychecks can cover.

How to handle it / Checklist

1. Before filling up, compare prices by municipality using DACO's weekly monitoring at daco.pr.gov/monitoreo-gasolina.
2. If you suspect a gas station is charging above published parameters, file a complaint at daco.pr.gov/servicios/querellas or call (787) 722-7555; you can also use the 3-1-1 orientation line.
3. Check your LUMA/AEE bill each month to confirm the fuel-purchase adjustment charge and catch any unusual fees.
4. If you run a business, update your transportation-cost projections and consider negotiating routes or volumes with suppliers before diesel climbs further.
5. Budget extra for gas and groceries, anticipating that rising freight costs may show up on store shelves in the coming weeks.
6. Follow official updates from DACO and the Energy Bureau on possible rate adjustments or relief, and verify directly with the Frente Amplio de Camioneros or local media before believing rumors of strikes or service disruptions.

What's next

CRECE analysts warn that if the conflict between the United States and Iran drags on, or the Strait of Hormuz is fully closed, the oil shock could push Puerto Rico's economy toward a contraction in 2027. Meanwhile, the government faces a dilemma: higher prices boost "crudita" tax revenue for the General Fund even as they squeeze household budgets, a tension likely to feature in the fiscal debate in coming weeks. On the labor front, although the Frente Amplio de Camioneros ruled out a local strike for October 1, the freight and trucking sector will keep pushing for hauling-rate reviews as long as diesel stays above $1.49 a liter, so further protests or negotiations in the coming weeks are not off the table.