“Be fair to the public” – Pres. Ali to transport operators

President Dr Irfaan Ali on Tuesday urged transport operators and other Private Sector stakeholders benefiting from Government fuel subsidies to “be fair to the public”, arguing that many have not passed on the savings to consumers despite billions of dollars in tax relief and subsidies aimed at cushioning the impact of rising global fuel prices.

The Head of State also called on the Private Sector to share the burden of rising fuel prices, as the Government has maxed out direct fuel subsidies, and assured that exploring plans for ports and a refinery here continue as key to this country’s long-term energy stability amid global disruptions.

“We were able to take excise tax to zero. What that did is that it gives us now no room to adjust the excise tax. And now that the price has increased at the national market, we are asking those, all the stakeholders who would have benefited from the zero per cent excise tax, to be nationalistic in their approach,” Ali said in an address on his Facebook platform.

Although Guyana is a significant crude oil producer, he reminded readers that it lacks refining capacity. As a result, all refined products are imported at world market prices. To cushion citizens, the Government removed excise taxes on fuel imports, a measure that has cost the treasury more than $100 billion Guyanese dollars annually. The Government has also directly subsidised diesel and gasoline since March of this year, further reducing profit margins to stabilise the market.

With private-sector transportation, especially by minibus operators, increasing by over 100 per cent recently, the Government’s balancing act between fiscal responsibility and consumer protection, Ali reasoned, underscored the urgent need for shared sacrifice in a volatile global energy market, given the operators benefited significantly from fuel subsidies.

“In practical terms, when we took off the zero per cent, when we took excise tax to zero per cent, that translated to approximately $500 savings for citizens on every gallon of diesel or gasoline purchase. It was a $500 saving, providing substantial relief to households, businesses, and the wider economy. For minibuses operating in Georgetown and consuming an average of, let us say, more than 12 gallons of fuel per day, which is 50 litres, the policy delivers savings of about $6000 per day, directly improving, of course, profitability and helping to keep fares affordable,” he said.

“Now that we have this challenge and we have fully utilised that tool, this tool that was available to us, I think the minibus operators, the taxi and speedboat operators, and of course, truckers, and all stakeholders within this framework now have to play their role. Because this is something that is affecting us at the national level,” he added.

The president explained that global energy markets are reeling as one of the most critical arteries of global trade, the Strait of Hormuz in the Middle East, has been nearly sealed off by escalating conflict and naval blockades. The closure has triggered a supply shock of historic proportions, pushing Brent crude repeatedly above $120 per barrel in 2026 and unleashing ripple effects across economies large and small.

“A challenge that the world is faced with today… has to do with the ongoing crisis in the Middle East, but more importantly, the rising costs for energy, international transport, and, of course, refined products…” he said.

Ali explained that his Government is one that plans with continuous measures, and this is why, looking ahead, the country is exploring long-term solutions such as its own refinery and upgraded ports. However, in those plans, challenges are noted, and one major obstacle is that in the Demerara River, the channel draught is not sufficient to accommodate large vessels.

“So, we have to use smaller transhipment vessels, which also affect the cost,” the President explained. Plans are underway to dredge rivers and expand facilities to allow larger ships, reducing freight costs.

Additionally, the Government is actively seeking partners to invest in a local refinery. “The other thing we are doing is that we are actively looking at partners who want to invest in a refinery here in Guyana so that we can have that security of supply and we can also have more price stability, given the fact that we are also producing our own crude,” he said.

The president said that while the Government can explain all it is doing, unity requires action from both the Private Sector and the Public Sector. “As a Government, we have demonstrated the full policy tool available to us. We now ask stakeholders to be fair to the consuming public,” he pleaded.

The Government has reaffirmed that no fare increases have been approved for any form of public transportation, including minibuses, taxis, hire cars, speedboats, and airport services. Public Works Minister Juan Edghill on Tuesday restated that existing fares remain in effect and warned that passengers must not be subjected to any unauthorised price hikes.

Government officials emphasised that transport operators have no authority to impose increased fares and that passengers who are forced to pay higher rates or face harassment are encouraged to report such incidents to the Public Utilities Commission for investigation and action.

At a stakeholder meeting involving transport regulators and enforcement agencies, the Government also addressed complaints of arbitrary pricing and poor service, noting that operating licences are conditional on compliance with regulations. Operators has been warned that if found engaging in price gouging or passenger mistreatment could face suspension or revocation of licences.

Only recently, persons utilising public transportation called for the introduction of a structured, and possibly state-run, public transportation system, citing rising fares, inconsistent pricing, and safety concerns within the current privately operated transport system. Many passengers reported overcrowding, reckless driving, and a lack of accountability among operators, with fares also fluctuating significantly depending on time and demand.

Several commuters, including teachers, students, nurses, and other citizens, said the rising cost of transportation is placing a heavy burden on household incomes and affecting daily routines, with some reporting spending substantial amounts on travel each day.