Guyanese to benefit from cheaper electricity rates soon

By Erica Williams

Guyana Power and Light (GPL) has agreed to reduce its electricity tariffs, in response to a proposal made by President Donald Ramotar, who during negotiations alluded to the significant drop in fuel prices on the international market.

The price for fuel has been dropping around the world since last June, with the latest price of fuel in Venezuela being recorded at US$39.19 per barrel, the lowest in almost half a decade.

Head of the President Secretariat (HPS), Dr Roger Luncheon made this disclosure on Wednesday during his post Cabinet media briefing at the Office of the President.

“GPL… has practically undertaken to have electricity charges for consumers across the board adjusted downwards,” Dr Luncheon told reporters as he broke the news. But he said the power company has not disclosed the new tariff structure or the implementation date.

Citizens across Guyana have repeatedly complained about the high cost of electricity. Due to the high electricity tariffs charged by GPL, some consumers have resorted to electricity theft.

A Partnership for National Unity (APNU) General Secretary Joseph Harmon had also called on the Government to find ways to reduce electricity tariffs and “get off Guyanese backs.”

With decreased electricity tariffs, Guyanese will likely pay less than many Caribbean countries, especially those whose generation of power is based on petroleum products.

While the Government is pleased with the decision taken by GPL, Dr Luncheon said Cabinet expressed its disappointment that the 30 per cent decrease in fuel prices is not adequately reflected at private fuel stations.

Earlier in the month, Finance Minister, Dr Ashni Singh announced that gasoline will be sold at cost of Gy$695 per gallon at Guyoil pump stations from a high of Gy$995. Further, he had declared that diesel would be retailed at Gy$694 per gallon, from a high of Gy$985 per gallon.

On Wednesday, Dr Luncheon further disclosed that the cost of cooking gas has also been reduced by 13 per cent. This 13 per cent decrease would see consumers paying approximately Gy$3500 per 20 pound cylinder of gas as opposed to Gy$4000.

The 30 per cent reduction was done with the hope that the reduced fuel prices at Guyoil would have created competition and force private gas stations to effect similar changes, however, to date only Sol Petroleum Guyana has followed in the footsteps of Guyoil.

Dr Luncheon also expressed disappointment that many public transportation owners are refusing to lower their fares, although they are benefiting from the reduced prices.

The HPS said while some persons have lowered their fares, “other categories of operators and owners have adamantly refused to make any change in fare structure.”

The HPS was adamant that the refusal to drop the fares by the public transportation sector is a betrayal of what was expected. “When fuel prices go up, there is a demand for increased fares but when fuel prices go down, it is like pulling teeth, fares lowered.”

Even in the aviation sector, the drop in fuel prices on international market is not being reflected adequately, Dr Luncheon said. He explained that only Guyoil’s newly established fuel plant at the Cheddi Jagan International Airport (CJIA) has reflected the decrease.