As the war in the Middle East disrupts global energy and food supply systems, President Dr Mohamed Irfaan Ali says that Guyana will inevitably feel the impact, even as the government moves to shield the country with major long-term investments.
Speaking on his “Tea on the Terrace” programme on Wednesday, President Ali outlined the significant impacts of the war, emphasising the severe disruption of traffic through the Strait of Hormuz, which has led to one of the largest oil supply declines in modern history.
He explained that the Strait, a critical waterway between the Persian Gulf and the Gulf of Oman, facilitates approximately 21 per cent of global oil supplies, 19 to 22 per cent of liquefied natural gas and one-third of the world’s seaborne fertiliser trade.
“What this has led to is widespread volatility,” he said.
This, he said, has triggered price increases in fuel, gas and agricultural inputs, with ripple effects being felt across economies worldwide, including Guyana.
The president further explained that this will have an immense impact on food production and prices in the months ahead, potentially reaching record levels of global hunger, with the World Food Programme estimating that 45 million more people are at risk.
Fertiliser prices have gone up by 46 per cent, and oil prices have also soared.
President Ali emphasised that his government has already been implementing measures to strengthen the country’s resilience, including investments in gas-to-energy infrastructure and plans for a refinery and fertiliser production.
The gas-to-energy (GTE) project in Wales is expected to come onstream by the end of 2026, and a second facility is being planned for Region Six.
“You have…a government that is ahead of the planning cycle and one that is ready and willing to make the necessary adjustments and to take the steps that will secure our economy not only for today but in the long term,” he affirmed.
These projects, the president emphasised, are intended to reduce Guyana’s exposure to global shocks, lower energy costs, and stabilise key sectors such as agriculture and manufacturing.
In response to public criticism, President Ali emphasised that handling the crisis demands ongoing policy updates and high-level engagement, noting that it requires serious planning instead of just surface-level comments.
“It’s not a simplistic social media post,” he underscored, reminding those in the political arena that Guyana operates within a global economic framework. [DPI]
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