Border residents, miners face hurdles to source cheap fuel -$5,000 per gallon in Matthews Ridge

Jun 01, 2019 News

The Guyana Energy Agency is monitoring the situation in border area, including Eteringbang, Region 7, and communities of R

Port Kaituma is reportedly one of the communities facing problems sourcing fuel.

egion 1.
In Matthews Ridge, residents said that they are paying as much as $5,000 for a gallon of gas.
The Region One administration has been forced to suspend work because of gas shortage, Chairman Brentnol Ashley has reported.
The regions have over the years been sourcing fuel from Venezuela, but that neighbouring country, which has been facing major political and economic problems, has drastically reduced its production from around three million barrels daily to about one million.
Miners and residents alike from both regions have called on Government to intervene in the situation, which has threatened to halt gold mining operations and other key services.
Yesterday, Director General of the Ministry of the Presidency, Joseph Harmon, disclosed that the government is paying attention to the situation in Regions 1, 7, 8 and 9.
Harmon said that there was evidence of some amount of rationing of gas that is allowed to cross through the border to Guyana.
The fuel that came from Venezuela has been not only for residents, but has been filtering down to miners, loggers and others.
So far, since the complaints of fuel shortage, Government has dispatched officials from the Guyana Energy Agency, who have advised that they are monitoring the situation for another week.
“There are still some concerns, from the miners in particular, that there is tax placed on fuel that comes from Venezuela to Guyana and therefore that they are asking for a removal of the tax. GEA and GRA (Guyana Revenue Authority) will have to consider. Certainly, it is our concern that the interest of our miners, our residents, in Regions 1, 7, 8 and 9; that they do not suffer any hardship because of what is happening in Venezuela.”
Harmon, while noting there are several options to boost the fuel supplies in those outlying communities, warned that there is a cost to send fuel from the city.
The situation appears to be occurring in the Cuyuni, Region Seven, nearer to the Venezuela border, and in areas of Region One.
Earlier this week, Ashley, in a Facebook plea, disclosed that the gas shortage has developed into a crisis.
He said that residents are paying between $8,000 and $10,000 for a five-gallon container in Mabaruma and Moruca, and $12,000 to $15,000 in Matarkai.
“This current situation has caused the transportation fares to hike significantly placing additional burdens on citizens and causing more decay into an already stagnant regional economy…”
According to Ashley, he is imploring Government for an intervention geared at providing an urgent solution. He said that taxis have raised fares and schoolchildren are paying much more.
He noted that fuel dealers and retailers are paying between $60,000 and $80,000 for a drum of gasoline.
In fact, he said the Regional Administration has started to reduce its service because of the fuel shortage.
Among other things, the Chairman called for an immediate relaxation on the $5,000 tax on every barrel of fuel by the Guyana Revenue Authority. He called on the Guyana Energy Agency to closely monitor the ships that are coming to the Waini area, Region One, and purchase unmarked fuel, taking it even to Suriname, thereby disrupting the supplies.
Ashley said that the Guyana Oil Company (Guyoil) should consider sending supplies to the area. “Guyoil should seek to provide an urgent supply to the Region since there is a very limited supply left,” he added.
While that is happening in Region One, there is a similar situation brewing in the Eteringbang area, which borders Venezuela. A brisk fuel trade had developed over the years in the area, leading to the establishment of an army post.
Miners, especially in the gold-rich Cuyuni, have been depending on Venezuela for supplies.
However, scores of miners would now be under threat from the situation.
In fact, one miner said that he is forced to pay up to US$240 (almost $49,000) per barrel of fuel when in normal times he would have paid US$120 ($24,000).