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‘Reports note no cap on fuel surcharge contradicting govt promises’

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In a recent public address, Ralph Gonsalves revealed a major contradiction regarding the nation’s utility costs, stating that despite government assurances, there is no cap on the fuel surcharge for electricity. Gonsalves cited official communication from the CEO of Vinlec, which clarified that instead of a price ceiling, there will be a “pass through” of costs directly to consumers.

Contradicting Official Claims

According to Gonsalves, Prime Minister Friday had previously suggested two variations of a cap on the fuel surcharge, set at levels of 72 and 77.

However, the Vinlec CEO’s written statement reportedly debunked these claims, confirming that consumers remain fully exposed to fluctuating fuel prices. Gonsalves characterized the government’s narrative as “smoke and mirrors” designed to camouflage a “war on the poor”.

Dramatic Rise in Electricity Costs

The lack of a cap has led to a sharp spike in monthly bills. Gonsalves provided a breakdown of the fuel surcharge rates for 2026, showing a steady climb:

  • March: 54.9 cents per kilowatt hour.
  • April: 66.5 cents per kilowatt hour.
  • June: 73.8 cents per kilowatt hour.
  • July: 83.2 cents per kilowatt hour.

This represents a 52% increase in the fuel surcharge since March. For a typical household consuming 250 units, this translates to paying $70.75 more in July than they did in February.

Impact on “Affordability Crisis”

Gonsalves warned that these rising costs are contributing to a national “affordability crisis”. He argued that while the government has asked Vinlec to absorb some costs for custom service charges, this “bleeding” of the utility company’s resources is unsustainable and may hinder essential maintenance and capital programs.

The opposition leader further noted that this surge in electricity costs, combined with recent hikes in gasoline and diesel prices, is creating significant hardship and suffering across the land.

He pointed out that households with multiple children and modest incomes are being forced to make impossible choices between paying utility bills and funding education. Gonsalves concluded that the government’s failure to implement a genuine, time-bound subsidy has left the system vulnerable to “shocks” that the average citizen cannot afford.

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Ernesto is a senior journalist with the St. Vincent Times. Having worked in the media for 16 years, he focuses on local and international issues. He has written for the New York Times and reported for the BBC during the La Soufriere eruptions of 2021.
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