PM Says APUA Will Phase In Fuel Variation Increase as Government Continues Subsidies

Prime Minister Gaston Browne says the Antigua Public Utilities Authority will not pass the full increase in fuel variation charges on to consumers immediately, as the country grapples with higher electricity costs driven by rising global fuel prices.

The remarks came after APUA announced a 70-cent increase in its fuel variation charge for May, citing continued volatility in international fuel markets. The utility said it would absorb part of the increase while the remainder would be reflected in customers’ monthly electricity bills.

The increase prompted criticism from opposition figures, including United Progressive Party Public Relations Officer Senator Jonathan Wehner, who argued that Antigua and Barbuda remains overly dependent on fossil fuels despite years of promises to expand renewable energy.

Speaking Pointe FM, Browne said the government is already subsidising fuel and electricity costs to ease the burden on consumers.

“APUA just announced that they can’t hold the fuel variation charge anymore. They’re going to increase it. But they’re not going to transfer all of it at once to the consumers,” Browne said. “Still has to subsidize.”

He added that the government is no longer earning revenue from fuel taxes and is instead helping to offset rising costs.

“In fact, what is happening now, we are paying to subsidize prices at the pump, and we are also paying to subsidize electricity,” Browne said.

The prime minister linked the higher costs to global instability affecting oil markets and said the country’s long-term solution lies in transitioning away from imported fossil fuels.

Browne pointed to ongoing talks with Saint Kitts and Nevis and the European Union on a proposed geothermal energy partnership that could allow Antigua and Barbuda to purchase geothermal power from Nevis through a subsea transmission line.

“We’re in advanced discussions now with St. Kitts and Nevis and the European Union,” Browne said, adding that geothermal energy would provide more reliable and cheaper “base load power.”

He also argued that Caribbean countries remain vulnerable to external shocks because most electricity generation across the region still depends heavily on fossil fuels.

The fuel variation charge was introduced by APUA in July 2024 to reflect fluctuations in fuel prices associated with electricity generation. The charge is adjusted periodically based on movements in global oil prices.

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