GY$25 billion subsidy for GPL

Last Updated on Tuesday, 10 February 2026, 23:13 by Writer

The state-owned Guyana Power and Light (GPL) Inc will receive a GY$25 billion dollar subsidy to avoid consumers paying more for electricity as a result of increased prices for generator fuel, public utilities minister Deodat Indar told the National Assembly on Tuesday.

Replying to questions from Forward Guyana Movement’s MP, Amanza Walton-Desir during consideration of proposed expenditures in the 2026 national budget, he explained that GPL budgets at a breakeven point of about US$70 barrel, noting that any price increase above that means that GPL will operate at a loss.

Mr Indar said that last year, the fuel price was US$83.00 per barrel, and for every dollar increase for fuel, it costs GPL GY$543 million “simply because of the amount that is used”.

The minister said 93 percent of the fuel that GPL uses is heavy fuel oil (HFO) and the remainder light fuel oil (LFO) at a cost of GY$47 billion annually. “It represents the lion’s share of generation cost so because of that, we, as a government did not increase fuel on anybody in the country,” he said.

Meanwhile, he restated the government’s plan for GPL to supply Linden and parts of the Linden-Soesdyke Highway with electricity from the gas-to-energy plant.