Global fuel crisis pushes BVIEC to sign short term contracts with SOL
As the world continues to grapple with rising fuel prices partly due to Russia’s invasion of Ukraine, BVIEC has indicated that it is waiting for global fuel prices to stabilise before it moves to sign longer term contracts with fuel suppliers.
Earlier this week, BVIEC signed four contracts with SOL St Lucia Ltd; giving the company the right to power the territory’s electricity grid for one year. At that contract signing ceremony, a member of the media asked BVIEC General Manager Leroy Abraham why longer-term contracts weren’t secured for the territory.
In response, Abraham said the BVIEC will be seeking new contracts in January 2023 and hopes fuel prices will be cheaper so the territory can look at securing longer term contracts.
“We’re hoping that things will regularise. We’re dealing with an unprecedented situation propagated by Russia’s invasion of Ukraine. So we’re hoping that by early 2023 things will normalise and fuel prices will go back to normal. That’s why we only engage in a contract for one year,” Abraham explained.
At the same time, Abraham said no one knows when global fuel prices will be stabilised and added that the current costs are baffling the world’s biggest economies and even academics around the world.
“We do know it won’t last forever but none of us has a crystal ball to say how long the current situation will continue, unfortunately,” Abraham said.
Despite the uncertainty, Rufina Lin, General Manager at SOL St Lucia (BVI) Ltd assured residents that there is enough fuel to power the territory throughout the upcoming festive season when energy consumption usually increases.
The new contracts with SOL were triggered earlier this year when the BVIEC’s relationship soured with its previous supplier, Delta Petroleum.
BVIEC said it terminated its contract with Delta because the company could not supply the fuel it promised under their original agreement.
However, Delta said it had initially warned BVIEC that the fuel might be in short supply at some point due to the global fuel crisis that is impacting the world.