“Higher fuel costs mean higher electricity costs,” – JPS

The Jamaica Public Service (JPS) has expressed concerns over rising fuel prices as a result of the conflicts between Russia and Ukraine, noting higher electricity bills could follow soon.

“The war in Ukraine means fuel is much more expensive and there is less of it,” explained JPS’ Chief Financial Officer, Vernon Douglas.

“The prices of both oil and natural gas have increased since last year. They will increase much more now. A higher fuel cost means higher electricity costs. We have to pay more to the fuel suppliers. We have no choice.  Fuel makes up about half of customers’ electricity bills, so the changes from one month to the next can be quite significant,” he said.

Douglas is relieved that the Government plans to cushion the impact of increasing energy cost on the most vulnerable, but hopes the Government will also suspend the fuel and electricity sales tax (GCT) to further ease the burden on consumers during this difficult time. 

JPS says it has started discussions with its fuel suppliers, Petrojam and New Fortress Energy (NFE), to assess their ability to meet the country’s fuel needs.

“Our suppliers are exploring all options to secure fuel to keep the lights on. There could be a global fuel shortage, as sanctions tighten on Russia. As a small country, Jamaica could be badly affected. We all have to work together to get through this global crisis,” Douglas said

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