Government withdrew $4 Billion in advance from Contingency Fund to buy fuel for GPL -PM Phillips

Prime Minister Mark Phillips has informed the National Assembly through its Committee of Supply that the Government took an advance of $4 Billion from the contingency fund to purchase fuel for the Guyana Power and Light Company, in an effort to keep the lights on.

The Committee of Supply was at the time considering $8.5 Billion in advances taken from the Contingency Fund earlier this year. Of that money, $4 Billion went to GPL.

According to the Prime Minister, the $ 4 Billion was used to purchase 547,000 barrels of fuel at US$34 per barrel.

But Opposition MP, David Patterson pointed out to the Committee of Supply that only $3.6B was used to purchase fuel for GPL. The Prime Minister was asked to explain the spending of the remaining $400 million.

In response, Prime Minister Phillips explained that the remaining $400M covered “other fuel related costs,” promising to provide the disaggregated figures at a later date.

“Mr. Speaker, we have no problem with laying over a disaggregated amount in the interest of the honourable member, it is the people’s money and we can assure you and the House that we will spend the money for what it is appropriated for and that is to keep the lights on for the people of Guyana,” the Prime Minister said.

He told the Committee of Supply that the fuel was procured primarily for the Demerara-Berbice Interconnected System (DBIS), and will ensure that the lights are kept on.

“Mr. Speaker, the fuel was supplied to the Guyana Power and Light and it was utilized throughout the Demerara-Berbice Interconnected System, where ever we are generating power for the people of Guyana, who live in the DBIS. Fuel is supplied to Essequibo. Fuel is supplied to Bartica, where ever GPL operates their generators, the money is utilized to supply fuel throughout and to cover all Guyana Power and Light operations,” the Prime Minister said.

Six months ago, GPL received $6.1 Billion in the National Budget.

The Prime Minister said though requesting additional money for GPL, the Government has not increased the cost of electricity for citizens, noting that the rates remain at pre-pandemic levels.