Fuel Costs Rise Again as Pelican Energy Warns of Global Pressures

Turks and Caicos, March 30, 2026 – Electricity costs in the Turks and Caicos Islands are climbing again, with Pelican Energy reporting increases in the fuel factor for March, while warning that global instability could push prices even higher in the months ahead.

In its latest update to customers, the power provider confirmed that fuel factor rates — the portion of electricity bills tied directly to the cost of fuel — have risen across most service territories.

Providenciales, North Caicos and Middle Caicos will see a 3.4 percent increase, bringing the rate to $0.1658 per kilowatt hour, while Grand Turk and Salt Cay will experience a 2.8 percent rise to $0.1569 per kWh. The rate for South Caicos is still pending, though in February it climbed by 2.8 percent to $0.1728 per kWh.

The fuel factor is a variable charge, meaning it moves in response to international oil prices — and right now, those prices are under pressure.

Pelican Energy pointed to geopolitical tensions in the Middle East, including ongoing conflict affecting key global shipping routes such as the Strait of Hormuz, as a major driver of recent increases.

That narrow waterway near Iran is one of the world’s most critical oil transit corridors, with a significant share of global fuel supply passing through it daily. Any disruption — whether from conflict, threats, or shipping delays — has a direct impact on global prices.

Energy markets have remained volatile as a result, with production decisions by OPEC and its allies also influencing supply levels and pricing trends.

For the Turks and Caicos Islands, which relies heavily on imported fuel for electricity generation, the impact is immediate.

“Because we rely on imported fuel to generate electricity, these market conditions can influence fuel costs in TCI,” the company said, noting that it is closely monitoring developments.

While the upward movement in fuel costs is concerning, Pelican Energy also indicated that infrastructure upgrades are underway — projects that may cause short-term inconvenience but are expected to improve long-term energy reliability.

Those improvements could include enhancements to generation capacity and distribution systems, though in the near term, residents and businesses may experience disruptions, including traffic impacts linked to ongoing works.

The company emphasized that the fuel factor will continue to fluctuate in line with global trends, rising when international prices increase and falling when they decline.

For consumers already facing high utility costs, the latest adjustment reinforces how closely local electricity prices are tied to global events far beyond the region’s control.

With tensions in key oil-producing areas showing no clear resolution, and global supply routes remaining vulnerable, the outlook for fuel costs remains uncertain.

For now, Pelican Energy says it will continue to monitor international developments and keep customers informed — but the message is clear: what happens in global oil markets is being felt directly on electricity bills at home.

Developed by Deandrea Hamilton • with ChatGPT (AI) • edited by Magnetic Media.