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.
Copyright 2024 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.
Not due to war in Ukraine. Due to the stupidity and incompetence of USA President Biden. He declared a war om fossil fuels and continues to do so, causing missive interruption of fossil fuels. Now he wants to close down all coal mining in the USA. Please put the blame where it should go. Fuel prices may not go down for years so get ready for a rough ride.
VG resident you speaking truth lot people don’t the news
The BVI missed out on renewable energy, look at Costa Rica. There is fuel available in countries close to us and we are not the US we can buy
“We’re dealing with an unprecedented situation propagated by Russia’s invasion of Ukraine”
OPEC, which Russia isn’t a signatory to is who sets worldwide gas prices; allyuh tolians this stupid? Allyuh politicians really think allyuh is a$$-hores buddy.
Sorry Fox News fool. BVI gov why this happen. Too stupid to agree to Leroy asking long term contract w oil at 50 2 years ago cause too much graft payoff and snoopy projects to piss money on and get headlines of chalk dust. Now we fkd. Diesel scarce everywhere. Not Biden. EU is 80% deisel vehicles, you Vg bush educated boy. Russia oil gone. Math for dummies. I welcome. Get your news fixed.
OPEC plus is what you call opec when it walk lockstep with Russia. So whether politic bs from us dems or not, that’s what happened. Remove 80% of diesel feedstock from Europe- you get this. I’ll lmfao. As you don’t get it. Don’t be smug if you missing data
Why no one asks how much money we burning with this contract?
They signed a contract for cheap dirty fuel oil that pollute more! Please report facts not just SPIN.
#2 oil burns incompletely, causing more air pollution. Spend the extra money for better fuel that won’t make BVI people sick over the long term.
If you are going to put a green leaf on all your tourist advertising then you need to put your money where your mouth is!