The Guyana Power and Light (GPL) says it remains financially afloat despite rising fuel costs, with the government providing additional funding to cover increased fuel expenses.
Kesh Nandlall, Team Leader of GPL’s Executive Management Committee, made the disclosure during an appearance on the Starting Point podcast.
Asked about GPL’s financial position and whether the company was “in the red,” Nandlall said, “We are floating.”
He explained that GPL has been absorbing increases in fuel prices without increasing electricity rates, as the government has taken a policy decision not to increase electricity tariffs.
According to him, the government has been providing GPL with the additional funds required to meet the increased cost of fuel.
He said the 2026 Budget includes $25.7 billion in GPL subsidy, particularly for fuel.
Nandlall said the government is also providing capital funding for GPL’s infrastructure investments.
He explained that the additional funding is important because if GPL cannot meet its operating costs, it would also be unable to meet its capital costs.
However, Nandlall said rising fuel prices are putting additional pressure on the utility.
He said fuel prices have increased further due to the war in the Middle East, noting that the index price used when GPL prepared its budget was based on information available late last year.
According to Nandlall, that index may not have accounted for the current situation in the Middle East.
He said, “As a result, prices have further escalated.”
Asked how much additional funding GPL may need to cover the increased costs, Nandlall said the company is still calculating the amount.
“It is in the billions, but we are doing the calculations now.”
Nandlall explained that the amount of fuel consumed by GPL is significant and therefore has a substantial impact on the company’s finances.
