GPL’s increased fuel costs drive public enterprises’ operating expenses to new highs

GPL’s increased fuel costs drive public enterprises’ operating expenses to new highs – Mid-Year Report reveals

Sep 04, 2024 News

Kaieteur News – The Guyana Power and Light Inc. (GPL) has been a major contributor to the increased operating expenses of public enterprises in the first half of 2024, according to the recently published Mid-Year Report.

The report highlighted that public enterprises’ total receipts for the period amounted to $91.6 billion, an increase of $12.9 billion compared to the corresponding period in 2023.

However, it was stated, “At the same time, operating expenses for the public enterprises were $87.3 billion, 14.7 percent above the corresponding period in 2023. The increase was mainly from Guyana Power and Light (GPL) Ltd. with higher payments for material and supplies due to the increased volume and price of fuel purchased in comparison to the corresponding period in 2023.”

Despite these challenges, the report projects that public enterprises will end 2024 with a cash surplus of $1.7 billion.

Moreover, another section of the report stated that the Government of Guyana (GoG) remains vigilant regarding the financial health of state-owned enterprises (SOEs), particularly GPL, which, alongside other SOEs like the Guyana Sugar Corporation (GuySuCo) and Guyana National Printers Limited, owes the government a total of US$392.6 million (approximately $81.9 billion) as of June 2024.

Last month, the National Assembly approved the total sum of $16 billion to purchase fuel for GPL.

The Committee of Supply first approved the sum of $4 billion which catered for advance the Government took from the Contingency Fund to purchase fuel for the State agency.

Prime Minister Brigadier (Ret’d) Mark Phillips who had to give account for the advance, told the House that the money was spent on some 547,000 barrels of fuel at a cost of US$34 per barrel. The remaining $400 million was utilized for other fuel related costs.

An additional $12 billion was then approved for the State entity. Prime Minister Phillips had stated that the money will be spent on 1,641,000 barrels of fuel at a cost of US$34 per barrel.

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GPL’s increased fuel costs drive public enterprises’ operating expenses to new highs – Mid-Year Report reveals

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