President Ali warns against fare hikes amid global fuel crisis

May 20 2026

President Dr. Irfaan Ali is calling on public transportation operators and other stakeholders to act responsibly and avoid imposing excessive fare increases as global fuel prices continue to climb amid instability in the Middle East and disruptions to international transport systems.

In a statement issued Tuesday, the President said Guyana, despite being a major crude oil producer, still depends heavily on imported refined fuel products and is therefore vulnerable to rising international energy costs.

President Ali noted, however, that the Government has spent hundreds of billions of dollars over the years to cushion consumers from inflationary pressures linked to fluctuations in the global fuel market.

“You would recall that the Government of Guyana removed the excise tax on imported refined products to zero,” the President stated.

According to the Head of State, the removal of the excise tax has generated savings of more than $100 billion annually for consumers and helped keep local fuel prices well below the increases being experienced internationally.

He explained that the measure translated into savings of approximately $500 on every gallon of gasoline or diesel purchased by consumers.

President Ali said the policy has significantly benefited minibus operators, taxi drivers, speedboat operators, truckers, farmers, and businesses across the country.

“For minibuses operating in Georgetown and consuming an average of more than 12 gallons of fuel per day, the policy delivered savings of about $6,000 per day directly,” he explained.

Despite those interventions, the President pointed out that there was no corresponding reduction in transportation fares when fuel prices declined previously due to government measures.

As a result, he said the Government now expects transport operators and providers of public services to demonstrate social responsibility during the current period of global uncertainty.

“We expect that all of the operators will reduce their profit lines so as to mitigate that impact,” President Ali stated.

The President also disclosed that since March 2026, the Government has been subsidising diesel and gasoline through measures aimed at reducing profit margins within the fuel supply chain to stabilise the local market.

He noted that state-owned fuel supplier GUYOIL has already significantly reduced its profitability in an effort to maintain balance in local fuel prices.

President Ali further explained that the current global fuel crisis is not being driven by shortages in supply, but rather by difficulties associated with the movement and transportation of fuel products internationally.

He urged importers of refined fuel products and transportation providers to work alongside the Government in protecting consumers from additional economic strain.

The Head of State also outlined several long-term initiatives aimed at strengthening Guyana’s energy security and lowering freight costs.

Among the measures are plans to improve port infrastructure and dredge the Demerara River to accommodate larger vessels, which would lower shipping costs and improve economies of scale.

Additionally, the Government is engaging potential investors interested in establishing an oil refinery in Guyana to improve supply security and price stability in the future.

President Ali said the administration remains committed to using every available policy tool to shield citizens from international economic shocks while pursuing long-term solutions to strengthen the country’s energy and transportation sectors.