The BVI Electricity Corporation (BVIEC) has reported a surge in its total fuel bill for March, surpassing $4.3 million, marking the highest single-month fuel expenditure seen in at least two years. Photo: Facebook

In BVIEC's release of the monthly Fuel Data for March 2026, the company indicated that this represents a staggering $1.5 million increase (54%) compared to February's costs, despite using a similar volume of fuel. Every cent of this increase can be traced back to a historic price spike caused by the closure of the Strait of Hormuz. Photo: Facebook

Many consumers across the Virgin Islands have expressed concerns regarding the increase in electricity bills, following the Government’s announcement of a $1 million per month subsidy for electricity customers. This subsidy aims to alleviate the impact of rising fuel prices and to mitigate a potential 50% increase in electricity bills for households and businesses.

54% increase

In BVIEC's release of the monthly Fuel Data for March 2026, the company indicated that this represents a staggering $1.5 million increase (54%) compared to February's costs, despite using a similar volume of fuel. Every cent of this increase can be traced back to a historic price spike caused by the closure of the Strait of Hormuz.

“Even July 2025, which was the most expensive fuel month of last year, sat more than $686,000 below March’s cost.” The company stated.

Global events cause rises

The BVIEC’s Henry Wilfred Smith Power Station generates all its electricity from diesel fuel. Therefore, when global oil markets are disrupted—even by events thousands of miles away—the cost of electricity rises immediately.

“This is the financial fragility that BVIEC and the Territory face every single day. There is no buffer, no alternative fuel source, and no escape from a global price shock when you depend entirely on imported diesel,” it added.

Despite lowest demand rise still occurred

BVIEC also stated that March’s fuel consumption was nearly identical to that of January, differing by just under 2,000 gallons, and approximately 139,000 gallons more than February.

Despite March being the lowest-demand month of 2026 to date, with electricity demand falling approximately 1.76 million kWh below both January and February, BVIEC still faced its highest-ever fuel expenditure. Lower demand simply could not offset the unprecedented price spike.