Fuel Costs & Jamaican SMEs: Creative Solutions | Shawn Ashman

A Summary of Key Ideas from the MIIC Meeting with Business and Agency Leaders Prepared by Shawn Ashman | April 16, 2026

Disclaimer - This is not intended to be business advise it is just my creative perspective.

The Big Picture

On April 16, 2026, heads of agencies, business associations, and government representatives met with the Minister of Industry, Investment and Commerce to tackle one urgent question: how do rising fuel prices affect us, and what can we do about it?

The short answer is — the impact is real, it is already here, and it is going to get worse before it gets better. But the good news is that there are practical actions your business can take right now to protect itself. Here is what came out of the room.

What Is Actually Happening

The price increases are not isolated. They are connected in a chain that affects every type of business:

• Fuel prices are rising globally, driven in part by international conflict and market volatility
• Higher fuel costs push up electricity bills, freight costs, and transportation costs
• Higher transportation costs push up the cost of raw materials and imported goods
• Rising input costs lead to higher wages demands from staff
• All of this leads to higher prices passed on to consumers — and ultimately, reduced consumer confidence

Representatives from bakeries, flour mills, ceramics, lumber, manufacturing, law, and agro-processing all confirmed the same thing: costs are climbing across every sector.

One industrial oils manufacturer noted that his primary raw materials have more than doubled. A flour mill operator shared that wheat alone has increased by 25%. A ceramist said that rising prices have stopped her from scaling her business entirely. This is not a single-industry problem — it belongs to all of us.

 

Ideas That Can Help YOUR Business Today

These are the practical, actionable ideas that came directly from business owners and sector leaders in the meeting. Take what applies to you.

1. Stop Buying Just-in-Time — Start Buying Forward

One of the most powerful ideas in the room came from the flour milling sector. Just-in-time purchasing — where you buy supplies only when you need them — leaves your business completely exposed to price spikes. When prices jump suddenly, you absorb the full hit.

The recommendation: where your cash flow allows, purchase ahead. Buy your key inputs, raw materials, or stock before prices rise further. This is called forward purchasing, and it acts as a buffer against volatility. You may not be able to do this for everything, but identify your top two or three most price-sensitive inputs and see if buying in larger quantities or further in advance makes financial sense.

2. Shop Around, Buy in Bulk, and Be Strategically Fiscal

Consumer Affairs echoed a message that applies just as strongly to business owners as it does to individual consumers — shop around, compare prices, and buy in bulk where possible. Many SMEs operate on habit, using the same suppliers without questioning whether better rates are available.

Now is the time to review every supplier relationship. Are you getting the best price? Can you join with other small businesses to negotiate bulk rates together? Collective buying power is one of the most underused tools available to SMEs.

3. Plan Your Routes and Reduce Your Fuel Consumption Deliberately

If your business involves transportation — deliveries, field visits, purchasing runs, or staff travel — your fuel bill is a serious cost centre right now. The recommendation from the meeting is to be far more strategic about how you use fuel.

This means consolidating delivery routes, reducing unnecessary trips, scheduling smarter, and reviewing whether some travel can be replaced with digital alternatives. Small adjustments in how you move can produce significant savings over a month.

 

4. Explore Solar — Seriously, This Time

This came up repeatedly from multiple voices in the room, including business owners, advocates, and the Minister himself. Solar energy is no longer a luxury conversation — it is a survival strategy.

Several important points were raised:

• There are waivers and refund options available on solar products that many businesses are not accessing
• The Development Bank of Jamaica (DBJ) has programmes that can help finance the transition
• The suggestion was made that solar investment should be considered as part of a mortgage or long-term financing structure, making it more accessible
• Electrical vehicles were also raised as a medium-term option for businesses with delivery fleets

If you have been sitting on the fence about solar, the time to investigate it properly is now. The upfront cost is real, but so is the long-term protection it offers against fuel price volatility.

 

5. Access the Government Agencies and Funding That Already Exist

• A consistent frustration in the meeting was that many small businesses simply do not know what support is available or how to access it. The Minister was direct: the agencies are there — use them.

Agencies specifically mentioned include:

• DBJ (Development Bank of Jamaica) — financing and business support programmes
• JBDC (Jamaica Business Development Corporation) — training, including a Level 2 digital training programme that was praised and called for expansion
• Trade and export support through CARICOM — particularly relevant if you are producing goods that could be sold regionally

If you have not engaged with these agencies recently, now is the time to revisit what is on offer. One representative specifically raised the importance of educating SMEs about "friendly accounting companies" — professionals who can help small businesses manage costs and access funding more effectively.

 

6. Negotiate Better Bank Rates

• With costs rising and margins tightening, the interest rates on your business financing matter more than ever. The suggestion from the meeting is straightforward: go back to your bank and negotiate.

Many business owners accept the rate they are given without question. But rates can be negotiated, particularly if you have a good banking relationship or if you are willing to shop your account to another institution. Sector organisations can also play a role here — if associations negotiate collectively on behalf of members, better rates become possible.

 

7. Build a Business Continuity Mindset

One of the more sobering moments in the meeting came from the hardware and lumber sector, where the conversation shifted from managing today's costs to business continuity — the ability of your business to survive and keep operating through disruption.

• The questions every SME should be asking right now are:
• If prices increase by another 10-15% in the next quarter, can I absorb that?
• Do I have enough stock or supplies to keep operating through a price spike or supply disruption?
• Have I documented my key processes so the business can function if key people are unavailable?

One simple step: build a buffer of critical supplies — particularly food-based or input-heavy businesses. Having inventory that can carry you through a period of uncertainty is a form of insurance.

 

8. Plan for Price Increases — Do Not Wait for Them to Hit

A senior economist from the Ministry of Finance confirmed that further price increases are projected for the coming quarter. This is not speculation — it is an informed forecast from someone with access to the numbers.

What this means for your business: adjust your pricing strategy now, not later. Review your pricing model. Identify where your margins are thinnest. Consider whether a modest price adjustment now — communicated clearly to your customers — is better than a sudden large one forced on you later. Customers can accept a well-explained price change. What damages relationships is unpredictability.

 

9. Collaborate and Stop Going It Alone

Perhaps the most emotionally resonant idea in the entire meeting was the call to work together. It came from multiple voices across different sectors — and it deserves to be taken seriously.

Small businesses often compete with each other when the real competition is the external conditions they all face. There are enormous opportunities in:

• Collective purchasing — buying raw materials together to access bulk pricing
• Shared logistics — combining deliveries or transportation to reduce fuel costs
• Information sharing — letting each other know what is working and what is not
• Collective advocacy — presenting unified positions to government and agencies

The message was clear: Jamaica-first thinking means that when we pull together as a business community, we protect more businesses, more jobs, and more families.

 

10. Stay Informed and Make Decisions Based on Good Data

Finally, across multiple contributors, one theme kept surfacing: make informed decisions. Price volatility creates panic, and panic leads to bad business decisions — overspending, underselling, or freezing when action is needed.

The antidote is information. Stay connected to your sector association. Track your actual costs monthly. Know your numbers. Use the information available through agencies and ministries to plan, not just to react. As one business owner put it simply: "Use the good information we have to make strategic decisions."

 

In Summary

The table below captures the key actions discussed:

 

A Final Word

The conditions we are operating in right now are genuinely challenging. Fuel prices, global conflict, and supply chain disruption are not problems any single business created — or can solve alone. But how we respond within our own businesses is entirely within our control.

The ideas in this room were not theoretical; they came from business owners who are in the trenches alongside you. Take at least one idea from this list and put it into action this week. Small moves, made consistently, are what keep businesses alive through turbulent times.

We are stronger together. Let us prove it.

 

Perspective compiled by Shawn Ashman | MSME Alliance 2nd VP | The Art of Motivation Inc.