The Palau Public Utilities Corporation (PPUC) has announced the end of the 10-cent fuel cost subsidy, effective September 1, 2024, due to the exhaustion of funds appropriated by the government for fiscal year 2024. The subsidy, which was applied as replacement credits to residential customers’ monthly bills, will no longer be available.
The government had allocated $1.6 million in the FY 2024 budget to subsidize each residential customer’s Automatic Fuel Price Adjustment Clause (AFPAC). AFPAC reflects adjustments to fuel costs based on various factors, such as fluctuations in fuel prices and engine conditions.
PPUC stated that the allocated funds have been depleted, and no additional subsidies will be provided until further funding is appropriated. As a result, residential customers will be required to pay the full cost of power starting September 1, until the government decides to reinstate the subsidy. (By: L.N. Reklai)