Hike in electricity cost
The price of oil may have fallen worldwide, but for local consumers the cost of electricity will soon rise as a knock-on effect of the latest Budget.
While motorists will pay a higher fee at the pumps, Belco's customers will also pay for more for Customs duty paid on fuel.
Fuel is to take an extra duty of 5.5 cents per litre, starting in April. According to a spokeswoman for Ascendant Group, this means that a customer using 650 kilowatt hours per month can expect to pay $8.66 more on their monthly bill.
The Customs Duty increase contained in the Government's 2016/2017 budget increases the Customs Duty portion of the total cost of fuel from $23.05 per barrel to $31.79 per barrel.
This is slightly up from a similar hike added to the Budget last year.
The move will be in keeping with the Government's continued need to boost its revenues for deficit elimination, as stated by Bob Richards, the Minister of Finance.
The spokeswoman explained: “The total Heavy Fuel Oil price delivered to Belco was $77.93 per barrel in January 2016, which is inclusive of: the price of the commodity, supplier margin, shipping, Customs Duty, UNESCO Tax, handling, and Foreign Currency Purchase Tax.
“Belco does not receive crude oil; it is a refined product, blended to meet operating and environmental specifications.”