GEORGETOWN, Guyana, (DPI) – President Dr Mohammed Irfaan Ali has signalled a renewed push for the establishment of an oil refinery in Guyana, described as a critical national security priority amid escalating global energy uncertainties and supply chain disruptions.
Addressing the 136th general meeting of the Georgetown Chamber of Commerce and Industry at the Guyana Marriott Hotel, Georgetown on Thursday, the head of state said recent geopolitical tensions have reinforced the need for Guyana to strengthen its energy independence and resilience.
The president explained that while Guyana had previously focused on expanding fuel storage capacity, global developments have necessitated a shift back toward establishing a refinery.
“Now, I believe we should return to the conversation of a refinery for national security,” president Ali told members of the business community. He underscored that the ongoing instability in the Gulf region, particularly threats to the Strait of Hormuz, has exposed vulnerabilities in the global energy system and highlighted the risks for fuel-importing nations like Guyana.
Despite Guyana’s emergence as an oil-producing nation, president Ali reminded stakeholders that the country still depends heavily on imported fuel, particularly for electricity generation. He noted that the fuel bill for the Guyana Power and Light Inc. remains substantial and could rise further with global price shocks.
In this context, president Ali said, investing in refining capacity would provide greater control over fuel supply, pricing, and long-term energy security. The head of state also pointed to a broader strategy of building out national energy infrastructure, including the gas-to-energy project, which is expected to reduce reliance on imported fuels and lower electricity costs over time.
President Ali emphasised that closer collaboration between government and business will be essential to navigate the uncertain global environment while sustaining Guyana’s strong economic growth.
“We are closely monitoring the situation. We are vigilant, we are responsible, and we stand ready to make the necessary adjustments,” he assured.
The renewed focus on a local refinery, he added, forms part of a wider effort to secure Guyana’s economic future and reduce its exposure to external shocks in an increasingly volatile global energy landscape.
Meanwhile, president Ali said Guyana supports international calls for dialogue and peaceful engagement to stabilise the situation in the Middle East.
I also want to join with president Trump in the United States in calling on all parties in the Gulf to move towards dialogue and to have constructive conversation in normalising the situation in the Gulf that is affecting all of us,” he said.
The situation has triggered rising costs across several sectors, including a 25 percent increase in fertiliser prices, which could have direct consequences for agriculture and food production globally.
“These are the important ingredients for manufacturing, industrial development and most economies around the world,” the president told the business community.
President Ali warned that even if hostilities cease immediately, the damage to energy infrastructure across the Gulf could take years to repair.
“So already this is not a short-term situation. Even if the war stops tomorrow, you already have on our hands five years of challenge,” pointing to rising freight and transport expenses, explaining that shipping prices and insurance costs have already increased significantly due to the heightened risks in the region.
Maintaining open trade routes through the Strait of Hormuz is critical to global economic stability president Ali stated:
“That is why we support every effort to have the Strait of Hormuz open and functional and every effort in bringing the war to an end.”
