Fuel prices could further decrease as Govt pursues establishment of local storage facilities – VP

Guyanese are already enjoying the lowest gasoline prices in the Caribbean, thanks to a government subsidy on fuel imports, according to Vice President Dr Bharrat Jagdeo.

However, he noted that prices could fall even further as the government continues to implement additional measures aimed at easing the burden on consumers.

One such initiative currently being pursued is the development of local fuel storage facilities, which is expected to enhance supply management and reduce costs.

Addressing reporters during a news conference on Thursday, Jagdeo explained that though Guyanese are paying the lowest gas prices in the Caribbean, the country is still spending more than it should on the import of the commodity.

“Our import is constrained by the depth of the harbour here, the size of the vessels that bring in diesel, gasoline – refined products. We are paying between 25 to 35 percent more than we should really pay – and we still have the lowest gasoline in the Caribbean – because we pay a premium based on the size of the vessels that have to come in, so you have to bring multiple vessels in,” the Vice President explained.

“So that is why we’ve started exploring, about five months ago you heard, I think at the Energy Conference, you heard the president speak about these storage farm that we are we contemplating building out where if we can bring in bigger vessels and store more, the storage capacity in Guyana is limited too. So, if you bring in the bigger vessels, you have to have more storage. If we have bigger storage capacity and we can now land bigger vessels, either here in the area that has just been built out at Vreed-en-Hoop or even keep the vessels offshore and ferry the fuel into these storage vessels,” he further outlined.

According to Jagdeo, this initiative could result in lower fuel prices on the market. “So, the big ships come a bit offshore and then you bring in smaller quantities until our storage is there. We could cut gasoline and diesel prices even further,” he noted.

“That is something we are actively exploring, in fact, we’re working on it already,” the Vice President added.

Earlier this year, Jagdeo had explained that these storage facilities could save Guyana as much as 37 per cent on costs of purchasing refined products.

Addressing a University of Guyana (UG) Economic Society Forum, the Vice President had explained that “nationally, we have maybe a month of storage. So, after a month, if you don’t get products, you start running out. So, two things that will happen: If we can bring the bigger vessels, by dredging and building these bigger storage facilities, we can cut the purchasing price of our refined products between 20 to 37 per cent.”

In February 2025, during the opening of the 2025 Guyana Energy Conference and Supply Chain Expo (GECSCE) President Dr Irfaan Ali had announced a new fuel terminal infrastructure project in partnership with Curlew Midstream.

Curlew Midstream, a United States (US)-based energy infrastructure provider headquartered in Bentonville, Arkansas, operates terminal facilities in South Louisiana, and will play a key role in facilitating fuel trade between the US and Guyana.

It had also been announced earlier this year that Guyana is exploring a strategic plan to export its crude oil to the US for refining, with the aim of importing fuel for domestic use and potential regional distribution.

Meanwhile, for several years now, the government has reduced excise tax on gas from 50 per cent to 0 per cent. “We’re subsidising it, $560 for every gallon of gas or diesel you buy,” Jagdeo explained.

As a result, Guyanese are paying some US$0.81 per litre of gas while Bajans pay almost US$2 per litre and the global average is US$1.19 per litre as of July 2025.

In addition to lower fuel prices, the government is also actively pursuing measures that will reduce the cost of cooking gas and slash electricity prices by 50 per cent.

PPP/C targeting cooking gas at $1000 per bottle with GtE – Pres. Ali

Jagdeo explained that these initiatives will result in an increase in disposable income among the population and further drive private investments across the country, especially in the area of manufacturing.

Pres. Ali announces 50% reduction in electricity costs