President Dr Mohamed Irfaan Ali has clarified what government means when it talks about a national oil company, stating it would not be a state-run firm producing or investing in oil, but rather an entity built around a domestic refinery to bring down fuel costs and protecting Guyana from global price shocks.
The clarification matters because Guyana, despite producing crude oil offshore, imports all of the refined gasoline and diesel used at the pump. This means every spike in global fuel prices is passed on directly to Guyanese consumers and businesses.
“We cannot have crude oil and don’t have security of supply,” the president said. He further explained that a refinery would give the country control over its own fuel supply and “some shield against shocks that are currently existing.”
Asked directly about plans for a national oil company, he was clear on what it would not be.
“[The national oil company is] not as an investor but… one company that looks holistically at the entire ecosystem in terms of the supply,” he said.
He said the plan would also require expanding the country’s fuel storage capacity, which he said currently falls short of “the development aspirations of our country.” Storage options being considered range from 30 to 120 days’ worth of supply.
Longer term, President Ali said the refinery and expanded storage could also position Guyana as a fuel supplier to the wider CARICOM region.
“We must be an important supplier in the energy market,” he said.