Former Prime Minister Dr. Hubert Minnis said yesterday the government’s decision to increase Bahamas Power and Light’s (BPL) fuel charge will lead to business closures and layoffs.
“The increase in fuel charge will result in higher costs to the businesses and it means that their profit will dramatically decrease because you already have inflation, so there’s a possibility that businesses will lay off people,” Minnis said.
“And why? Because of [Prime Minister] “Brave” Davis’ decision to increase further the cost of living on the taxpayers.
“I repeat it over and over. Once ago, I went to the store and I spent $100 and I walked out with [two bags] full of grocery. Then suddenly, it came down to one bag. Now, I spend $100 and I don’t need a bag. I carry it in my hands now.
“That is what’s happening and the prime minister has increased that burden. He’s increased the inflation on top of inflation.”
Bahamians have complained about a high cost of living for many years.
Many Bahamians expect the situation to be made worse as a result of BPL’s incremental increase in its fuel charge over the next year.
The current fuel charge is 10.5 cents per kilowatt hour (kWh). As of October 1, it increased to 12.5 cents per kWh for consumers using less than 800 kWh and 14.8 cents for consumers using more than 800 kWh.
The charge will continue to increase until February 2024 when it will stand at 17 cents for usage under 800 kWh and 18 cents for usage over 800 kWh.
Between now and then, it will peak at 18.5 cents and 27.6 cents from June 1, 2023 to August 31, 2023.
In March, Davis stepped in to prevent BPL from increasing the charge from 10.5 cents per kWh to 13.7 cents.
At the time, he promised to “brainstorm” ways to avoid it altogether.
“My government will do its endeavor best to ensure that the rise in gas prices around the world will not have a deleterious effect on our people,” Davis said.
“Lord knows that our people could least afford to have more taxes or more costs visited upon their backs. My government will do all in its power to see how we can avert raising the cost of electricity on our people.”
When asked about this reversal yesterday, the prime minister said, “We reached that point where we’re at the last resort.”
