The Guyanese government has announced a substantial GY$25 billion (Guyanese dollars) subsidy for the state-owned power utility Guyana Power and Light Inc. (GPL) to prevent electricity price hikes for consumers amid rising global fuel costs. The decision was formally disclosed by Public Utilities Minister Deodat Indar during Tuesday’s National Assembly session while reviewing the 2026 national budget expenditures.
Minister Indar explained that GPL’s financial planning operates on a breakeven basis when fuel prices remain at approximately US$70 per barrel. With current prices significantly exceeding this threshold, the utility faces substantial operational losses without government intervention. “For every dollar increase in fuel prices beyond our breakeven point, GPL incurs an additional GY$543 million in costs due to the massive volume of fuel required for power generation,” Indar stated.
The minister revealed that GPL’s annual fuel expenditure reaches GY$47 billion, with 93% allocated to Heavy Fuel Oil and the remainder to Light Fuel Oil. These fuel costs represent the dominant component of the company’s generation expenses. The government’s subsidy strategy ensures that consumers will not bear the burden of these increased operational costs.
In related energy developments, Minister Indar reaffirmed government plans to extend electricity supply from the forthcoming gas-to-energy plant to Linden and sections of the Linden-Soesdyke Highway, representing a significant expansion of the national power infrastructure.