Guyana is closely monitoring a recent surge in global oil prices, driven by rising tensions in the Middle East, while simultaneously maintaining stable domestic fuel prices through tax relief and subsidies, Finance Minister Ashni Singh stated.
International oil prices have soared above US$95 per barrel following several attacks on cargo vessels in the Persian Gulf and the Strait of Hormuz, as reported by various media outlets. Singh noted that the price spike presents a “two-fold effect” on Guyana’s economy as the country is both an oil producer and a consumer of refined petroleum products.
According to Singh, higher oil prices enhance the value of Guyana’s crude exports and increase revenues flowing into the Natural Resource Fund (NRF), which supports the national budget. However, the nation remains heavily reliant on imported refined fuels, including gasoline, diesel, aviation fuel, and kerosene, meaning that global price hikes could eventually drive up domestic fuel costs.
“From that standpoint, higher oil prices have the potential to impact the cost of refined fuel products in Guyana,” Singh explained.
To mitigate the burden on consumers, the government plans to maintain a zero percent excise tax on gasoline and diesel throughout 2026. Additionally, the government is absorbing higher fuel costs for public utilities, recognizing the importance of diesel and heavy fuel oil for electricity generation while waiting for major energy projects, including the gas-to-energy facility at Wales and new hydropower systems.
Currently, subsidies to Guyana Power and Light (GPL) and Guyana Water Incorporated (GWI) are helping to offset the increased fuel costs for electricity generation. Singh emphasized that fuel prices at state-owned GuyOil have not risen, attributing this stability to 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 regarding disruptions to international shipping routes, Singh reassured that there is no immediate threat to Guyana’s fuel supply chain. A study by the Energy Chamber of Trinidad and Tobago revealed that Guyana recorded the lowest gasoline prices in the Caribbean as of July 2025.
