Utilities Minister Melford Nicholas says customers can expect a reduction in the fuel variation charge if international oil prices decline.

Nicholas gave the assurance as APUA responded to growing public concern over higher electricity bills.

The minister said the authority is not seeking to profit from the international fuel crisis and will adjust the fuel variation rate when its fuel costs decrease.

“As and when the disturbances abate and fuel costs come down, equally there will be a follow-on reduction in the fuel variation costs,” Nicholas said.

He explained that the current increase is closely linked to global instability affecting fuel markets and the cost of imported petroleum products.

APUA’s monthly fuel orders climbed from EC$11 million in January to EC$21.8 million in July, creating significant financial pressure for the authority.

Nicholas said the authority cannot permanently absorb an unbudgeted increase that could amount to more than EC$120 million annually.

He warned that doing so would undermine APUA’s sustainability and its ability to invest in water, electricity and telecommunications infrastructure.

The minister also expressed concern that higher energy costs could have a wider inflationary effect, particularly if supermarkets and other businesses pass their increased operating expenses on to consumers.

Nicholas said APUA remains sensitive to the impact on households and businesses and will continue monitoring international fuel prices.