Gov’t measures cushion impact of rising oil prices – Director Deygoo-Boyer

Guyana is better positioned to cushion the impact of rising global oil prices, according to Director of the Vreed en Hoop Shorebase Inc (VESHI), Nicholas Deygoo-Boyer.

Deygoo-Boyer made the remarks on Sunday during an episode of Starting Point, even as the ongoing instability in the Gulf region, particularly threats to the Strait of Hormuz, has exposed vulnerabilities in the global energy system.

Deygoo-Boyer explained that while Guyana remains vulnerable to external shocks, the government has implemented various measures to combat the potential impact it would have on Guyanese.

“We’ve used a lot of tools in the toolkit to try and not pass inflation on to the population,” he noted, pointing to interventions such as tax adjustments.

In this context, Budget 2026 highlights that the government continues to ease cost-of-living pressures, with the administration absorbing billions of dollars in costs that would otherwise be passed on to consumers.

The government removed value-added tax (VAT) on fertilisers, agrochemicals, and pesticides that benefit every single farmer and also removed VAT on machinery and equipment that they use.

Additionally, the budget specifically sets aside $9 billion to fund programmes aimed at reducing cost-of-living pressures, particularly on vulnerable groups across the country.

Deygoo-Boyer acknowledged that Guyana is a major crude oil producer, but it does not yet control the supply of refined products such as gasoline and diesel.

“We are a large producer of crude, but we do not control our fate in terms of refined products,” he explained.

In this context, President Dr Mohammed Irfaan Ali has signalled a renewed push for the establishment of an oil refinery in Guyana, which he described as a critical national security priority amid escalating global energy uncertainties and supply chain disruptions.

The president said last Thursday that investing in refining would provide greater control over fuel supply, pricing, and long-term energy security.

The head of state also pointed to a broader strategy of building out national energy infrastructure, including the gas-to-energy project, which is expected to reduce reliance on imported fuels and lower electricity costs over time.