Prices of oil have seen a steep increase worldwide as the United States has imposed sanctions on Russia’s oil exports, which is the largest petroleum supplier to Europe.
The Guyana Power and Light (GPL) on March 7 said the crisis has been severely impacting the company’s operations and has put it in an ‘unsustainable’ position.
According to President Dr Irfaan Ali, the increased price for energy has also been affecting the operations of the Guyana Water Incorporated (GWI) company.
Dr Ali made this statement during his address at the commissioning of the $141M Lusignan Well on Tuesday.
“When GWI and GPL budgeted, they budgeted with oil at $60 per barrel, not at $125 per barrel, so the main impetus for power and water is fuel, energy costs that have increased by a 100%,” President Ali said.
But despite this, the Head of State assured citizens that the price for water and electricity will remain the same.
This means consumers will not be paying any extra costs even though the utility companies are footing additional expenses.
“The Government is not going to allow that increase to be translated to the people of the country, we said to both entities, you are not going to increase by a cent, the Government will take up the additional expenditure and Fill the Gap,” Dr Ali stated.
Only last week, Vice President Dr Bharrat Jagdeo had stated that the Government will absorb the costs of these companies so that consumers do not feel the impact.