Latin America and the Caribbean are coordinating actions in response to one of the most severe external shocks in recent decades. The region’s Energy Ministers agreed that the current crisis will be better addressed collectively, rather than only through national reactions and measures.
A globally fragile scenario
The urgency is underscored by the global outlook presented by Keisuke Sadamori, Director of Energy Markets at the International Energy Agency (IEA). According to Sadamori, the conflict has caused significant damage to more than 80 strategic facilities, including refineries and liquefied natural gas (LNG) plants.
“Accumulated oil supply losses exceeded 300 million barrels in March and could reach 400 million in April,” warned the IEA official, noting that volatility has driven up prices at certain distribution hubs. This global deficit is placing direct pressure on Latin American and Caribbean economies, which are already facing increases of up to 64% in diesel prices.
Not just isolated efforts in the region
Faced with this diagnosis, representatives of the region’s countries agreed that a regional response should include three strategic pillars:
Unity in the face of emergency: Willingness to work jointly and in a coordinated manner to deepen regional energy integration.
A planned roadmap: Regional energy planning that provides and facilitates responses to the crisis.
Energy transition: The ministers emphasized that the transition is not only an environmental objective, but a tool of sovereignty to reduce dependence on imported fuels.
Resilience and renewable leadership
Despite the complex environment, the dialogue highlighted the region’s competitive advantages. Currently, 70% of Latin America and the Caribbean’s electricity generation comes from renewable sources, the highest proportion in the world.
Andrés Rebolledo, Executive Secretary of OLACDE, stated that “since the start of the armed conflict, the price of oil has risen by nearly 50%, with an impact on gasoline and diesel prices that has increased, on average, by 15% and 21% respectively, generating strong inflationary pressures and higher fiscal spending in response to this economic shock.”
Furthermore, Rebolledo noted that “it is clear that there is a willingness to work in a coordinated manner in collaboration and move forward from that perspective as a region in the face of one of the largest energy crises in recent times,” and emphasized that the current situation requires accelerating integration to strengthen energy security.
Latin America and the Caribbean must evolve from reactive responses toward a more robust and sustainable energy architecture, consolidating itself as a strategic bloc amid the greatest geopolitical energy uncertainty the world is experiencing today.
For more information contact:
Diana Soriano, Head of Communications
diana.soriano@olacde.org
