GPL says rising fuel prices severely affecting its operations
The Guyana Power and Light (GPL) says the Russian invasion of Ukraine and other events taking place in Europe is severely impacting its operations.
“As we witness these developments from a safe distance, the effects have already reached our shores and by extension, the Company. GPL’s landed cost for fuel today is approximately US$140 per barrel and has quadrupled from 2016 when the fuel price was approximately US$30 per barrel.
“International indicators point to further price increases. GPL currently utilizes approximately 3,700 barrels of fuel daily for electricity generation to meet the daily demand, at the cost of approximately $111.5 million,” a press release from the power company noted on Monday night.
This increase has moved GPL’s total monthly operating expenses to approximately $4.5 billion against monthly electricity sales of approximately $3 billion.
“This means that GPL has to utilize every dollar it collects to meet its operating expenditure. This financially challenging position cannot be sustained at current fuel prices.
“Every kilowatt-hour of electricity not generated would reduce the Company’s fuel costs and by extension the overall operating costs.
“Given this extremely challenging and unsustainable position, the Company is imploring all customers to practice energy conservation, as we work together to manage the Company’s expenses during this extremely difficult period.”