Updated on Monday, March 7, 2022, 11:44 p.m. by Denis Chabrol

State-owned Guyana Power and Light Inc (GPL) said on Monday that the Russian-Ukrainian war had triggered a sharp rise in fuel prices, driving monthly operating expenses to GY$4.5 billion from GY$3 billion. GY dollars of revenue.

“While we are witnessing these developments from a safe distance, the effects have already reached our shores and, by extension, society,” GPL said.

Brent crude oil prices climbed to $139.13 a barrel on Tuesday, the highest in 14 years, while GPL said its fuel landed cost was $140 a barrel on Monday.

Although the power company painted a grim picture of its finances – 3,700 barrels of fuel per day at a cost of GY$111.5 million – and described the situation as “an extremely difficult and unsustainable position”, nothing no clear indication that the Public Utilities Commission (PUC) would be asked to approve an increase in electricity bills. “This financially difficult position cannot be sustained at current fuel prices,” GPL said.

GPL said the rising cost of landed fuel has prompted GPL to use every dollar it collects to cover its operating expenses.

GPL also did not announce increased power cuts to save fuel consumption, but in its statement it noted that “every kilowatt-hour of electricity not produced would reduce the company’s fuel costs and, by extension, overall operating costs”.

According to GPL, “Given this extremely difficult and unsustainable position, the Company urges all customers to practice energy conservation, as we work together to manage the Company’s expenses during this extremely difficult time.”

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