Diesel fuel prices, which plummeted during a series of coronavirus lockdowns across the globe last year, are on the increase, meaning higher electricity bills for consumers in Cayman.
The fuel cost – which makes up a sizable portion of the average monthly electricity bill – has almost doubled since May last year.
The impact of that increase amounts to an additional cost of around $60 on the average monthly bill.
Caribbean Utilities Company passes these costs directly to the consumers with no mark-up.
“Diesel fuel prices in the Gulf Coast where a majority of CUC’s fuel comes from have been increasing over the past few months after a significant decline in 2020,” a spokesman for the utility said in response to questions from the Compass.
In May 2020, CUC average purchase price was $1.41 per imperial gallon, which translated into an 8.5 cents per kilowatt hour fuel factor on consumer bills for July 2020.
The average price paid in the past two months, April and May, was $2.40 per imperial gallon which translates to 14 cents per Kwh on consumer bills in June and July.
That would mean a difference of $60.50 for Cayman Islands residents based on the average monthly consumption rate of 1,100 kWh for CUC customers.
While that seems drastic, the fuel price did dip dramatically during 2020 and the current rate is around the same as it was in December 2019.