Fuel import costs jump to over 74% so far in 2026 – PM Phillips

– jet fuel saw more than 100% increase

With fuel prices being driven up due to instability caused by ongoing international conflicts and heightened tensions in major oil-producing regions such as the Middle East, Guyana has seen a dramatic increase of more than 74 per cent in fuel importation costs since the start of this year.
This was revealed by Prime Minister (PM) Brigadier (Ret’d) Mark Phillips in his capacity as acting Head of State at the National Seminar on Energy Efficiency and Conservation held on Friday at the Arthur Chung Conference Centre (ACCC).
“Guyana has experienced an average increase of 74.8 per cent in fuel import costs since the start of this year alone. Gasoline acquisition costs rose by 62.4 per cent, diesel by 7.3 per cent, and jet fuel by an extraordinary 102.6 per cent. These numbers translate directly into higher costs for utilities, for businesses, and for every household in our country,” said Phillips, whose office has responsibility for the country’s energy sector.
Based on international reports, prices for oil have been hovering around US$100 per barrel due to the ongoing war in the Middle East. The aviation industry has been heavily impacted, with jet fuel costs more than doubling in some regions to over US$200 per barrel in April.
Roughly 25 per cent of global jet fuel exports and a significant portion of the world’s LPG (Liquefied Petroleum Gas) transit through the Persian Gulf.
This led to the local airlines that operate flights to hinterland regions across Guyana increasing airfares last month. In an April 15 statement, the Aviation Operators’ Association of Guyana (AOAG) explained that the prices for Avjet and Avgas, the fuels used by aircraft for passenger and freight services by all domestic aircraft operators, have increased substantially.
According to the association, this “…will result in the increase of airfares for customers.”
In fact, public relations consultant for the AOAG, Kit Nascimento, had previously told Guyana Times that domestic airfares could get even higher if the Middle East war continues and fuel prices spike on the global market. This week, the cost for aviation fuel was just over US$180 per barrel.
These increases in domestic airfares will not only impact the movement of people in and out of interior locations but will trigger price hikes for commodities such as food and fuel heading into those areas. It will also affect the local tourism industry, with some tour operators having already announced increases for their packages.

Subsidising fuel costs
Despite these increases in global fuel prices, however, the Guyanese Government has been footing the costs to avoid them being passed on to Guyanese consumers. In fact, the state-owned Guyana Oil Company (GUYOIL) already assured last month that prices for gasoline, diesel, kerosene, or ultra-low-sulphur diesel (ULSD) at any of its service stations across the country would not go up.
On Friday, PM Phillips reminded that the People’s Progressive Party/Civic (PPP/C) Government has been subsidising fuel import costs since the post-COVID era to shield Guyanese consumers from the global price increases.
“Our Government is taking steps to shield our citizens. The excise tax on fuel has been held at zero percent since March 2022. And we continue to monitor markets and engage with local oil companies on mitigation measures. We are expanding fuel storage capacity and investing in infrastructure to reduce the risk of supply disruptions.”
But according to the PM, these are just defensive measures. He posited that the strategic answer is to reduce the country’s dependence on imported energy through the twin pillars of renewable energy supply and energy efficiency.
Since August 2020, the Government has added over 186 megawatts (MW) of new generating capacity to the national grid through the construction of solar farms, the completion of two mini-hydropower plants, the installation of 46 solar radiators, and the distribution of some 37,240 solar home energy systems, adding over 37MW of renewable energy.
These efforts will be further bolstered by the Gas-to-Energy (GtE) Project at Wales, West Bank Demerara, which will add a total of 600MW of power, with the first and second phases set to come on stream by 2030. Additionally, the next five years will see another 136MW of solar being installed along with the advancement of the 165-megawatt Amaila Falls Hydropower Project.