Overview:
Palau President Supports Restoring Power Subsidies Amid Rising Costs
KOROR, Palau — President Surangel S. Whipps Jr. has expressed support for restoring household power subsidies cut from the FY 2026 budget, citing the ongoing global fuel crisis and its impact on local energy costs.
By: L.N. Reklai
“These subsidies were meant for times such as this, when there is a real need,” said President Surangel Whipps Jr. in response to a question about whether he would support the Senate bill that proposed to restore the power utility subsidies that he cut from the FY 2026 Unified Budget.
The ongoing war in the Middle East once again impacted the cost of fuel around the world, and more so here in Palau, with a small economy and at the end of the long supply chain.
In the FY 2026 budget bill, both the Senate and the House of Delegates agreed to a $1.7 million power subsidy for every household, but President Surangel Whipps Jr., using his authority to reduce the budget, reduced the amount to a little over $425k, or a quarter of the original amount.
Senate Bill 12-46 seeks to restore the subsidies to their original amount. The bill passed 3rd reading in January and was transmitted to the House of Delegates, where it has been buried in a House committee until now.
Meanwhile, as the price of fuel at the pump climbs and the war in the Middle East seems to escalate, folks are beginning to anticipate higher costs for goods. The recently distributed social assistance to around 2,000 retirees and persons with disabilities was timely.