Public Utilities and Aviation Minister Deodat Indar defended his ministry’s 2026 budget estimates, highlighting the heavy financial burden of subsidies—most notably a $25 billion allocation to Guyana Power and Light Inc.

Minister Indar explained that the allocation is directly linked to the fuel subsidy provided to GPL, noting that the government continues to absorb rising operational costs in essential services, even as his newly configured ministry remains lean in terms of staffing and administrative overhead.

During the examination of the estimates, Tuesday night, Opposition MP Amanza Walton-Desir pressed for details on the purpose of the subsidy and a breakdown of the transfer to GPL. Minister Indar responded that ongoing fluctuations and sustained increases in fuel prices have placed considerable pressure on GPL’s finances.

“Total together, it’s about $47 billion per annum that we spend on fuel alone. It represents the lion share of generation cost. So because of that, we as a government did not increase fuel on nobody in the country, we subside the fuel and that is the figure there. It’s not the full amount, it’s a subsidy, its part of the total cost,” the minister told the House.

Another Member of Parliament questioned the minister on whether similar subsidy arrangements apply to other power agencies, citing the Mabaruma Power Company, whose subsidy stood at $228 million in 2024 and is projected to increase to $545 million in the 2026 budget.

To this, Minister Indar explained, “So, the scenario is not the same but the money is for fuel, so the scenario which I talked about for GPL is not the same for small power companies. So Mabaruma $545 million, it’s for fuel but every part of the country that receives fuel receives it at a different price.”

Minister Indar further explained that fuel must be transported to various locations, and that transportation costs account for the differences in fuel prices, with Lethem being the most expensive.