Fossil fuel prices are likely to rise due to increased summer demand, OPEC's extended supply cuts, and a potential Federal Reserve rate cut affecting the USD. These factors impact electricity bills, but BVIEC is committed to monitoring markets and mitigating price fluctuations.
Fossil Fuel Markets Forecast Notice
Dear Customers
Our continuous assessment of the fossil fuel markets, indicate that several factors persist that may contribute to an elevated selling price of fossil fuel in the near-term. Over the next few months prices remain subject to seasonality factors in the US (this is where we get our fuel for the region) as peak demand conditions persist over the summer season. On a wider scale, OPEC (The Organization of the Petroleum Exporting Countries) continues to maintain an extension in oil supply cutbacks. Lastly, there is the much-anticipated decision of the Federal Reserve in September, wherein it is expected that they will lower the benchmark rate which should lead to a lower US Dollar. This too is indicative of higher oil prices.
While the aforementioned reasons by no means are exhaustive, this is important to the BVIEC and its customers since fuel price constitutes a significant part of the monthly electricity bill and therefore volatility in fuel prices will be reflected in the electricity charges for BVIEC and its customers.
Customers are encouraged to bear this reality in mind in the coming months, as it in no way reflects BVIEC’s sustained efforts to improve the quality and efficiency of service to its customers. Please be assured that we are continuing to monitor the markets, and our efforts to mitigate against price fluctuations.
