Guyana gains from climbing oil prices but fuel costs could bite consumers

Guyana is poised to earn significantly higher oil revenues as global prices climb and production expands in the Stabroek Block, but the gains are expected to come alongside rising fuel costs and broader economic pressures.
Speaking at a press conference, President and General Manager of ExxonMobil Guyana Limited, Alistair Routledge, said ongoing geopolitical tensions, particularly in the Middle East, are tightening global oil supply and pushing prices above US$100 per barrel.
This follows major disruptions to the Strait of Hormuz after Iran moved to restrict or halt shipping in response to attacks by the United States and Israel, significantly impacting global oil flows and driving up prices.
Routledge explained that while higher prices translate into increased earnings for oil-producing countries like Guyana, consumers will face higher fuel costs.
“Of course, where there is conflict around the world, the energy industry is being impacted, and that has mixed blessings for everybody. For Guyana, as a net producer and exporter of energy, that can mean positive things. But that is not necessarily what people see and feel every day. It means that energy prices are going up and fuel prices at the pump are going up,” Routledge said.
He also noted that under the production sharing agreement, up to 75 per cent of revenues is allocated for cost recovery. However, higher oil prices are enabling Guyana to repay historical costs faster than expected, potentially as early as 2026 instead of 2027.
This development is expected to increase the government’s share of revenues beyond the current 14.5 per cent, with gains already being realised through higher-priced oil sales.
Routledge said the country is moving into a more dynamic revenue environment, influenced by oil prices, production levels and ongoing investments, but maintained that the outlook remains positive.
He added that individual cargoes, previously sold for about US$70 million, are now fetching close to US$100 million.
Production has also surged, with output averaging approximately 916,000 barrels per day in January this year.