NIA CHARLESTOWN, NEVIS (June 18, 2026)– The following is a statement by the Nevis Island Administration (NIA) Ministry of Finance:

PRESS STATEMENT

The recent escalation in the price of petroleum related products on the world market continues to have a damaging effect on activities in the local economy, manifesting itself through prices increases across all economic sectors.

This volatility is due primarily to the ongoing tensions between the United States, Iran, and other Gulf States. The most notable effect is a drastic increase in the price of diesel which has increased the cost of generating electricity at our locally owned Nevis Electricity Company (NEVLEC).

In September 2022 in response to a similar but less drastic fluctuation in the price of fuel, the Nevis Island Administration (NIA) took the decision to cushion the effect on domestic consumers by subsidizing the fuel surcharge thus shifting the burden of payment from the domestic consumers to the Government.

During the period of September 2022 to April 2026 the NIA has paid an amount of $28.9 million to NEVLEC as a subsidy for fuel surcharge on behalf of every household on Nevis.

While it has always been the intention of the NIA to provide relief and cushion the effect of price increases on our citizens, the continued full subsidizing of the fuel surcharge has become unmanageable and unsustainable as it is imposing a heavy demand on the already limited resources of the NIA.

The NIA is aware that the Board and Management of NEVLEC have taken the decision to reinstate the partial fuel surcharge to domestic consumers. While we understand the difficulty that this will pose for our citizens, this decision was necessary to provide NEVLEC with the resources to continue to provide reliable electricity service to meet the demands of our island.

We crave your understanding and encourage all to institute the necessary energy conservation measures aimed at reducing your consumption of electricity ultimately restricting the amount of surcharge on your monthly electricity bill.

The NIA has asked NEVLEC to revisit this matter once global fuel prices stabilize.