The government is taking decisive steps to protect citizens and the national economy from the global fallout of the ongoing conflict involving Iran and the USA. President Dr Mohamed Irfaan Ali, in a special edition of ‘Tea on the Terrace’, said that the situation underscores the importance of forward planning and strategic investment.
“We have to understand that the consequences of this war is not short-term. The impact would be felt in the coming years,” he said.
The conflict has significantly affected global oil, gas, and fertiliser supplies, particularly through disruptions along the Strait of Hormuz, a critical shipping route. This has contributed to increased instability in global markets, with rising fuel and food prices impacting countries worldwide.
The disruption has also extended to global fertiliser markets, with shortages and price spikes threatening farming output worldwide. Farmers in many regions are already reducing fertiliser use due to high costs, which could lead to lower crop yields and increased food insecurity.
“We are part of a global system. We will import these challenges. We will import this inflation,” he said. “Some projections see 50 per cent of low-income countries reporting increases in food inflation between the last quarter of 2025 and the fourth quarter of 2026. We also see massive increase in global fuel prices at pumps in every single country in the world. Here in Guyana, we are one of the few countries, less than one per cent, and maybe the only country in this region that has completely removed excise tax, taxes on fuel imports, refined products.“
However, President Ali pointed out that Guyana’s proactive policies are helping to cushion these effects locally.
The president said that government has been actively engaged in assessing risks and implementing measures to protect citizens and the economy.
Central to this effort is Guyana’s ongoing investment in energy security. President Ali highlighted major initiatives such as the Gas-to-Energy Project, expansion of renewable energy sources, and plans for future infrastructure including a refinery and fertiliser production.
“Long before this crisis, my government implemented several initiatives to make our gas energy more secure. The gas energy project. Investment in renewables such as solar and hydro.We provided incentive for hybrid and electric vehicles. Provide incentive for agriculture processing. Value creation and investment,” he emphasised.
These developments are expected to reduce reliance on imported fuel and stabilise costs in the long term.
“In Guyana, the long-term investments that we are making in our own gas bottling plant will see us building up internal capacity to withstand certain shocks because we’ll have our own natural gas. We’ll control the price of energy by managing through our own natural gas the cost, bringing down the cost of energy by half so that we will have stable fertiliser, stable gas, stable industrial and manufacturing opportunities,” he explained.
Guyana is also working closely with regional and international partners to strengthen cooperation and share solutions. He noted that discussions are ongoing at multiple levels to ensure that both Guyana and the wider Caribbean are better equipped to navigate the evolving global landscape.
Despite the challenges facing the international economy, including rising fertiliser costs and supply chain disruptions, the government remains focused on safeguarding key sectors such as agriculture, energy, and manufacturing. These efforts are aimed at maintaining stability while creating new opportunities for growth.
The president underscored that careful planning and continuous engagement are essential in managing the current environment. “We are in conversation every single day with global players in the market, making decisions that will protect the people of our country,” he said.
Against the backdrop of this global uncertainty that is expected to have long term implications, the president stressed that Guyana’s approach is centered on long-term sustainability, ensuring that the country remains prepared, competitive, and secure in an increasingly complex global environment.
“You have a responsible government. A government that is ahead of the planning cycle and one that is ready and willing to make the necessary adjustment and to take the steps that will secure our economy not only for today but in the long term ensuring resilience, sustainability and prosperity,” he assured.