Globally gas prices are an increasing burden to the motoring public however, in Guyana consumers will be seeing a further reduction in the prices at the pump in the near future.

The Guyana government through the Ministry of Finance has effectively reduced the cost of gasoline and diesel from the Guyana Oil Company Limited (GUYOIL) in a bid to bring further relief to consumers across the country.

Senior Minister in the Office of the President with responsibility for Finance, Hon. Dr. Ashni Singh announced on behalf of the Government a reduction of gasoline and diesel prices at the pump to be charged by the Guyana Oil Company Ltd (GUYOIL).

The prices at the pump charged by GUYOIL will be reduced as follows: gasoline prices reduced by 20 percent from $269 per litre to $215 per litre; and diesel prices reduced by 15 percent from $265 per litre to $225 per litre. 

According to a press release, the Ministry of Finance indicated that during the first half of 2022, global oil prices surged more than 50 percent, increasing from US$77 per barrel at the end December 2021 to US$120 in June of this year; having risen as high as US$137 per barrel primarily because of the Russian invasion of Ukraine. The impact of the dramatic increases in oil prices were significant and given the interconnected nature of the global economy, translated into higher cost of landing fuel in Guyana.

The press release states that, to mitigate the impact of rising global fuel prices on domestic consumers and the productive sectors to which fuel is a key input, the Government lowered the Excise Tax rate on both gasoline and diesel from 10 percent to 0 percent in March of this year. It would be recalled that, previously, during the Budget 2022 presentation, the Government lowered the Excise Tax on both gasoline and diesel from 20 percent to 10 percent to minimize the impact of rising global oil prices.

The Government has been progressively lowering the Excise Tax rate on both gasoline and diesel, from 50 percent to 35 percent in February 2021, 35 percent to 20 percent in October 2021, in keeping with Government’s policy to adjust the taxes on fuel, to mitigate the impact of rising fuel prices on the world market.

Since resuming office in August 2020, the PPP/C Government has implemented a suite of measures to ease cost of living pressures and to improve disposable incomes. In an ongoing effort to address these issues head-on and to mitigate the effects of rising prices globally on all Guyanese citizens.

The reduction in excise taxes is one such of several measures implemented by the Government since assuming office.

Canadian based CGX Energy along with Frontera Energy Corporation have indicated their readiness to spud (begin drilling) the Wei-1 well in the Corentyne block offshore Guyana.

The partners have issued a press release stating their commitment to drill the Wei-1 well and that final preparations are complete in advance of spudding the Wei-1 well.

The well will be spudded no later than January 31, 2023 utilising the NobleCorp Discoverer semi-submersible mobile drilling unit.

The Wei-1 well will be located approximately 14 kilometres northwest of the Kawa-1 exploration well in the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana

To go alongside this activity, CGX intends to support the Government’s effort to accommodate increased vessel activity in Guyana. According to a statement from the partners, in-river construction activity has begun for a deepwater port at Berbice.

Work has already begun at the Berbice Deepwater Port (BDWP) on a 50 x 12 metre access trestle from the quayside yard westward into the Berbice river, together with the necessary dredging of the river.

Construction of the wharf, perpendicular to the trestle, will follow.

The cargo terminal aspects of the BDWP are targeted to commence in mid-2023 and operation of oil and gas support base in late-2023, subject to construction schedules and supply chains.

In collaboration with the Government of Guyana, CGX has shifted the immediate focus of the Port to service expected demand for aggregates and building materials to support the Government’s infrastructure development in Berbice which must be imported into the region from elsewhere in the country and offshore.

Photo credit: www.noblecorp.com

The morning session on Day One of the International Energy Conference Guyana 2023 featured speeches from the former president of Colombia, Mr. Ivan Duque; the Prime Minister of Trinidad and Tobago, the Honourable Dr. Keith Rowley; the president of Suriname, His Excellency Mr. Chandrikapersad Santokhi; the Prime Minister of St. Vincent and the Grenadines, the Honourable Dr. Ralph Gonsalves; and ended with His Excellency Dr. Mohamed Irfaan Ali.

Mr. Duque elaborated on the concept of exploiting the richness of the underground to eradicate the poverty above ground. This concept will generate social and economic technological transitions that Guyana will have to make way for in forthcoming years. He stated that a balance between climate action and energy security should exist to see the development of nations such a Colombia and Guyana, where the potential to develop exists. Duque stated that investment in new technologies, understanding the complexities of new kinds of energy can transform Guyana, once considered. “Guyana has the possibility of using the richness of the underground to close the social divide once used intelligently”, said Duque, and praised the existence of the Low Carbon Development Strategy. Mr. Duque stated that ignoring the opportunity to tap into these energy sources will eventually make this energy very costly for both the country and the Caribbean region.

He commented on the vast amount of land space that can be used in Guyana for the opportunity to house equipment to tap into non-conventional renewables, such as solar panels. Duque also called on the consideration of hydrogen as an energy source, alongside oil and gas in a developed Guyana.

“Indigenous communities can help with nature-based solutions…they exercise effective protection of nature”, said Mr. Duque. Future development plans should involve the communities who know the natural environment so that there is little negative impact.

The possibility of food security was also mentioned, as Guyana can be a supplier of food to CARICOM nations in times of crises when there are high prices and high inflation. Mr. Duque concluded by stating that 2030 should see the Low Carbon Development Strategy as a success once it is taken into effect.

His Excellency Mr. Chandrikapersad Santokhi joined the conference virtually via a prerecorded video. He voiced that solar energy has been key to the modern development of Suriname, and that an existing hydropower plant currently powers about 50% of the country. His speech highlighted many ways in which Suriname and Guyana have similar goals in terms of how energy can develop the nation. Santokhi concluded by stating that his government is committed to harnessing energy for development and committed to fighting climate change with clean energy.

Caricom nation leaders, Prime Ministers Dr. Keith Rowley and Dr. Ralph Gonsalves, of Trinidad & Tobago and St. Vincent & the Grenadines respectively, discussed various statistics related to energy development in the islands, their islands’ developments thus far and what more can be done. There were many agreements with Mr. Duque’s points and the bright future of the Caribbean region once effective strategies are put in place.

His Excellency President Dr. Mohamed Irfaan Ali highlighted climate change, food security, and energy security as the three main challenges that Guyana needs to confront. “Guyana has one of the best environmental credentials in the world”, said the president. He stated that a signed agreement with the United States has been able to catalyze the value of our natural resources. The Low Carbon Development Strategy was said to be an area that the government has enhanced, since the issue of climate change is an area that cannot be ignored. President Ali mentioned that there is an aim to increase the barrels of oil captured per day by over 100 billion. He hopes that Guyana can be self-sufficient in five years and eventually be put in a position to export to neighboring regions. His Excellency mentioned that plans are currently being taken to improve how indigenous communities receive electricity.