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March 13, 2026
Guyana is closely monitoring a surge in global oil prices triggered by escalating tensions in the Middle East, while maintaining stable domestic fuel prices through tax relief and subsidies, Finance Minister Ashni Singh said.
International oil prices have climbed above US$95 per barrel after several cargo vessels were targeted in the Persian Gulf and the Strait of Hormuz, according to media reports.
Singh said the price spike creates a “two-fold effect” on Guyana’s economy as the country is both an oil producer and a consumer of refined petroleum products.
Higher oil prices increase the value of Guyana’s crude exports and boost revenues flowing into the Natural Resource Fund (NRF), which supports the national budget, he explained.
However, Guyana remains heavily dependent on imported refined fuels such as gasoline, diesel, aviation fuel and kerosene, meaning global price increases could raise domestic fuel costs.
“From that standpoint, higher oil prices have the potential to impact the cost of refined fuel products in Guyana,” Singh said.
To cushion consumers, the government will maintain a zero per cent excise tax on gasoline and diesel throughout 2026, he added.
The government is also absorbing higher fuel costs for public utilities. Diesel and heavy fuel oil remain key inputs for electricity generation while Guyana awaits the completion of major energy projects, including the gas-to-energy facility at Wales and new hydropower systems.
In the meantime, subsidies to Guyana Power and Light (GPL) and Guyana Water Incorporated (GWI) are helping to offset increased fuel costs for electricity generation.
Singh also said fuel prices at state-owned GuyOil have not increased, describing the stability as the result of deliberate government policy.
“The government remains keenly attentive to what is happening globally, and our paramount objective continues to be the protection of the Guyanese consumer,” he said.
Amid concerns about disruptions to international shipping routes, Singh said there is currently no immediate threat to Guyana’s fuel supply chain.
Guyana recorded the lowest gasoline price in the Caribbean in July 2025, according to a study by the Energy Chamber of Trinidad and Tobago. (DPI)
