Gov’t eyes storage solution to push fuel prices even lower – VP Jagdeo

In July, Guyana’s fuel prices were the lowest in the Caribbean, and Vice President Dr Bharrat Jagdeo says the government is exploring large-scale fuel storage facilities to accommodate bigger vessels that will push fuel prices even lower.

He made this statement during a People’s Progressive Party/Civic (PPP/C) press conference held at its headquarters on Thursday.

The Trinidad and Tobago Energy Chamber report published last Thursday said Guyana recorded the lowest petrol price among CARICOM members, retailing at approximately US$0.81 per litre.

According to the vice president, “this price can even get lower.”

He explained that the cost of fuel imports has increased by 25 to 35 per cent because fuel is currently imported in smaller vessels due to the harbour’s depth.

That is why the government is exploring the construction of large fuel storage farms.

This is an initiative first announced by President Dr Mohamed Irfaan Ali at the energy conference held earlier this year.

He said, “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.”

Dr Jagdeo posited that increased storage capacity would reduce import costs and lead to lower prices for gasoline and diesel.

With cheaper fuel, electricity costs can become even lower, boosting investments in sectors such as manufacturing, transport, and agro-processing.

Additional measures like zero-interest loans, business incubation hubs, and co-investment in factory shells are also being pursued to support small businesses and economic growth.

“That is something that we’re actively exploring…We’re working on it already,” he affirmed.

When the government assumed office in 2020, the excise tax stood at 50 per cent.

However, it was reduced to 35 per cent in February 2021, then to a further 20 per cent in October.

A further reduction was made to 10 per cent in the 2022 budget, and then to zero.

By implementing zero per cent tax on fuel, the government is paying $560 on every gallon of gas or diesel Guyanese buy, “that’s how it happened,” the vice president underscored.

He said the government will continue to subsidise the fuel costs until the landmark Gas-to-energy project being developed in Wales, Region Three, comes onstream.