Dear Editor
For months, the headline-grabbing promise of the Gas-to-Energy (GTE) project has been clear: “Cheap cooking gas for every kitchen.” Citizens were told to look forward to $1,000 or $1,500 for a 20lb cylinder—a life-changing reduction for the average Guyanese household.
However, the recent “Call for EPC Proposals” for the Guyana Gas Bottling & Logistics Company (GGBL) has sent a cold shiver through the kitchen. When you strip away the technical jargon and look at the government’s own numbers, the math tells a story that is vastly different from the campaign trail promises.
The Math That Isn’t Adding Up
The Office of the Prime Minister states that Guyana’s current demand is 3 million cylinders per year, with a total retail value of G$14 billion.
Simple division reveals a startling figure: $4,666 per bottle.
If the current retail price in Georgetown and along the coast ranges between $3,500 and $4,300, why is the government’s official baseline for this “savings” project starting at nearly $4,700? If we are moving toward $1,000 gas, why are we advertising a $14 billion market to international investors?
Three Hard Questions for the Authorities
- Is the $1,000 promise dead?
Investors don’t put up hundreds of millions of dollars based on “political promises.” They invest based on the revenue figures in the tender documents. If an investor builds a business plan on a $14 billion market ($4,666/bottle), they will expect to collect that revenue. Who is going to tell the investor that the price must be dropped to $1,000?
- Is this “savings” or just a “subsidy”?
If the production and logistics costs remain high, the only way to reach that $1,000 target is for the government to pay the difference using our oil revenues. This isn’t an “efficient local industry”—it’s a taxpayer-funded discount. Is the goal to build a sustainable, low-cost industry, or are we simply masking high operational costs with oil money?
- Who really benefits from the “Logistics” in GGBL?
The document highlights “Logistics” as a core component. We have a saturated market with private distributors already in place. By inserting a new state-backed middleman into the mix, are we creating more efficiency, or are we just creating a new layer of costs that the consumer will eventually have to bear?
The Need for Transparency
Guyanese are tired of “placeholder” numbers and shifting targets. If the government’s intent is to eventually subsidize the price down to $1,000, they must say so clearly. If the $14 billion figure is merely an inflated estimate to lure investors, it risks setting a dangerous precedent for the project’s financial viability.
We were promised energy security and lower costs. Right now, on paper, we are looking at a project that values our cooking gas higher than the local shop does today. It’s time for the Office of the Prime Minister to show their work.
The citizens have done the math. Now, we want the answers.
Sincerely
Hemdutt Kumar
