Global fuel price hike: Govt monitoring situation, will continue to protect consumers – Finance Minister assures

The government is closely monitoring a global surge in oil prices following the ongoing conflict in the Middle East, while maintaining stable domestic fuel costs through long-standing proactive policies.

According to reports, international oil prices have climbed above US$100 a barrel after several cargo vessels were targeted in the Persian Gulf and the Strait of Hormuz.

Finance Minister Dr Ashni Singh, speaking on the matter, stated that the situation creates a ‘two-fold effect’ on the Guyanese economy, impacting the nation both as an oil producer and a consumer of refined petroleum products.

On the production side, Dr Singh noted that the price spike increases the value of Guyana’s oil exports.

This ultimately results in higher revenues flowing into the Natural Resource Fund (NRF) and subsequently into the national budget.

He noted that while higher prices benefit exports, Guyana remains a significant consumer of refined petroleum products, including gasoline, diesel, aviation fuel, and kerosene. From this standpoint, he warned that global price increases could drive up the domestic cost of refined fuels.

“And from that standpoint, higher oil prices, of course, have the potential to impact the cost of refined fuel products in Guyana,” he explained, according to the Department of Public Information.

However, the government has adopted what the minister described as an ‘extremely proactive approach’ to mitigate this impact. A key measure maintained by the administration is the total removal of excise taxes on refined petroleum products.

“We have indicated in this year’s budget our intention to continue to maintain, during the course of 2026, a zero per cent excise tax on gasoline and diesel,” the minister further reassured, noting that this is intended to shield consumers from volatility in international fuel prices.

In addition to tax relief, the government has been absorbing the rising fuel costs affecting public utilities.

Diesel and heavy fuel oil remain the primary inputs for electricity generation in Guyana, particularly as the country awaits the full operation of major energy projects, such as the gas-to-energy facility at Wales in Region Three and new hydropower systems.

In the interim, the government continues to subsidise Guyana Power and Light (GPL) and Guyana Water Incorporated (GWI) to shield consumers from price hikes. This will offset the increased fuel costs for power generation.

Dr Singh also confirmed that fuel prices at the state-owned Guyana Oil Company (GUYOIL) have not increased, reiterating that this stability is a result of intentional government policy.

“I want to say that the government remains keenly attentive to what is happening globally, and our paramount objective continues to be the protection of the Guyanese consumer,” he underscored.

Amid global tensions and concerns about disruptions in international shipping routes, questions were raised about the reliability of Guyana’s fuel supply. In response, Dr. Singh said there is currently no immediate threat to the country’s fuel supply chain.

Guyana recorded the lowest gasoline price in the Caribbean region in July 2025, well below the global average. These were the findings of the Energy Chamber of Trinidad and Tobago.

Two days ago, GUYOIL stated that there have been no increases in fuel prices for gasoline, diesel, kerosene, or ultra-low-sulphur diesel (ULSD) at any of its service stations across the country.

According to the oil company, prices remain the same at: $170 per litre of Gasoline; $168 per litre of Diesel; $155 per litre of Kerosene; and $190 per litre of ULSD in Georgetown and on the East Bank of Demerara (EBD).

“As a state-owned company with a national mandate, GUYOIL continues to work closely with the relevant regulatory authorities to ensure that fuel supply and pricing across its network of service stations remain stable, fair, and consistent with national policy. GUYOIL remains committed to maintaining a reliable fuel supply and competitive pricing for motorists, businesses, and households across Guyana,” the oil company noted.

Since March 2022, the Guyana Government has been actively subsidising fuel imports to block global price surges from being passed on to consumers. Another specific intervention to combat rising global prices was the reduction of excise tax on gasoline and diesel from 10 per cent to now zero per cent.