JPS Warns Fuel Price Spike Will Impact Power Bills

The Jamaica Public Service (JPS) is warning that electricity bills are expected to rise in the coming months as global fuel costs increase due to conflict in the Middle East.

According to the utility provider, the fuel-related portion of customers’ bills fluctuates in line with real-time international market prices, similar to how petrol prices change at the pump.

As a result, any increase in global fuel costs leads directly to higher charges on electricity bills, while decreases would have the opposite effect.

The company highlighted that Jamaica remains heavily dependent on imported fuel for power generation, with the majority sourced from the international market.

Approximately 70 per cent of the island’s electricity is produced using liquefied natural gas, while another 20 per cent is generated from heavy fuel oil and diesel.

Consequently, shifts in global fuel prices have an immediate impact on the cost of producing electricity locally.

Officials pointed to ongoing geopolitical tensions in the Middle East as a key factor disrupting supply and driving prices upward.

Recent figures indicate that oil prices have climbed significantly, moving from roughly US$60 per barrel in December 2025 to nearly US$100 by March 2026.

Importantly, JPS maintains that it does not earn profits from fuel charges, as these costs are passed directly from suppliers to consumers.

Oversight of these charges is carried out by the Office of Utilities Regulation (OUR), which reviews and approves all related adjustments.

At the same time, collaboration is underway between JPS and the OUR to develop a fuel rate stabilisation mechanism aimed at reducing sharp monthly fluctuations.

Such a system is intended to improve predictability in electricity costs and provide greater stability for customers during periods of global uncertainty.

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