The average electricity bill could rise by as much as $8 a month as a result of Government’s hike in fuel duty, according to Belco.

The company says the fuel increase of five cents a litre announced in the Budget will mean the customs duty it pays on fuel will rise from $15 a barrel to $23.

The power provider says this will add approximately $8 to the average monthly electricity bill for householders on the Island.

The increase in fuel duty, which is aimed at tackling Bermuda’s growing debt, will take effect from the beginning of April.

Finance Minister Bob Richards stated during his Budget speech that the tax hike would raise about $9.6 million in extra revenue for Government.

A spokeswoman for Belco told The Royal Gazette: “Once passed by the legislature, the five cent per litre increase in customs duty, announced in the Budget, will increase the customs duty Belco pays on fuel oil from $15.10 per barrel to $23.05 per barrel.

“This will add approximately $8 to the average monthly electricity bill, based on average usage of 600 kilowatts hours per month.”

The rise in the cost of fuel has already prompted concerns from taxi drivers who fear that the hike will affect their livelihoods.

Family charities are concerned that the rise in electricity bills could also have a major impact on families already struggling in tough economic times.

Martha Dismont, executive director of support charity Family Centre, told The Royal Gazette: “When I heard of the five cent increase, I considered it inconsequential.

“If it equates to an $8 increase in electricity costs, that is an added problem for families already struggling to make ends meet. We are at such a critical state in our community that an increase of $8 could make some families having to decide between paying the electricity bill and feeding the family.

“There is a percentage of our population barely hanging on by a thread as a result of loss of jobs, loss of family support, and/or being in the rear of the line because of having less skills than those more recently made redundant.

“We have a problem that is not going away any time soon, and we need more creative solutions.”