Middle East Conflict Pushes Oil Above US$100; Guyana Monitoring Impact

The Government of Guyana says it is closely monitoring developments in global oil markets after escalating tensions in the Middle East pushed crude prices above US$100 per barrel.

Global oil prices surged amid reports of attacks on vessels near the Persian Gulf and the Strait of Hormuz, a strategic shipping corridor through which a significant share of the world’s oil supply passes. Energy analysts say any threat to tanker traffic through the Strait could tighten global supply and drive prices higher.

Senior Minister in the Office of the President with responsibility for Finance, Ashni Singh, said the developments have a “two-fold effect” on Guyana’s economy.

On one hand, higher oil prices increase the value of the country’s crude exports, resulting in greater revenues flowing into the Natural Resource Fund and supporting national spending.

However, Singh noted that Guyana remains a major consumer of refined petroleum products such as gasoline, diesel, aviation fuel and kerosene.

“And from that standpoint, higher oil prices, of course, have the potential to impact the cost of refined fuel products in Guyana,” the minister said.

To cushion the potential impact, the government has maintained the removal of excise taxes on gasoline and diesel. Singh said the 2026 budget provides for the continuation of a zero per cent excise tax on those fuels.

The administration said it is also subsidising Guyana Power (GPL) and Light and Guyana Water Incorporated (GWI) to offset rising fuel costs used in electricity generation while the country awaits the completion of major energy projects, including the gas-to-energy development at Wales.

Singh also confirmed that fuel prices at GuyOil have not increased, noting that the stability reflects deliberate government policy.

“I want to say that the government remains keenly attentive to what is happening globally, and our paramount objective continues to be the protection of the Guyanese consumer,” he said.

The minister added that despite global tensions and concerns about shipping disruptions, there is currently no immediate threat to Guyana’s fuel supply.