Another Exxon study warns Govt. about high cost of living from 8th project

Mar 22, 2026 News

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– 75% hike in fruits, vegetables, meats and ground provision prices since 2021

– Guyanese purchasing, cheaper, less nutritious foods in smaller quantities

– 29% of respondents in survey skipping meals or eating less to counter food costs

– 5% reported going a day or more without eating

(Kaieteur News) – In a nation blessed with not only billions of barrels of oil, but massive gold, diamond, bauxite and timber resources among others, Guyanese are skipping meals and, in some instances, eating cheaper and less nutritious foods just to get by as cost of living in the country continues to climb.

A recent Environmental Impact Assessment (EIA) conducted by ExxonMobil for its eight project in the Stabroek Block indicates that this may just be the beginning as cost of living can further increase due to the project. The impacts will be felt greater by low-income families, the assessment warns.

The study, done by Exxon’s consultant, Acorn International, highlights potential impacts on cost of living and highlights the difficulties already being experienced by Guyanese in low-income households to afford food.

With 900,000 barrels of oil now being produced offshore daily, the country benefits from a meager 14 and half of every 100 barrels pumped by the multinational oil giant. While profits soar for the company’s shareholders, Guyanese continue to cry out over increasing food prices, with mothers especially struggling to provide meals for their children.

Guyanese were previously warned by the company that its operations can impact cost of living, a reality that was downplayed by Vice President Bharrat Jagdeo.

Exxon has again sounded the alarm that Longtail, its eight deepwater project can further deepen the cost of living struggles being faced by Guyanese.

It said, “The Project’s potential for adverse impacts on socioeconomic conditions, employment, and livelihoods include a potential increased cost of living in the Georgetown area; although this impact is expected to be negligible for the general population, there could be a minor impact on lower income households.”

Deeper into the 734-words Volume One document, Kaieteur News learned that communities have reported that the cost of living has gone up, “and they don’t feel like oil money is helping them directly.” This, the study adds, has made citizens lose trust in the government and groups like the Environmental Protection Agency (EPA).

According to the impact study, “As of mid-2025, the cost of essential food items in Guyana, including fruits, vegetables, meats, and ground provisions, has surged by over 75 percent since 2021, according to a July 2025 report.”

The consultant explained that this trend reflects persistent inflationary pressures driven by rising transportation costs, import dependencies, and supply chain disruptions.

Further, data in the EIA highlighted that malnutrition remains a dual burden in Guyana. It states, “According to Global Nutrition Report (Undated) and the United Nations World Food Programme (2024), 9.1 percent of children under five experience stunting, while 6.9 percent are overweight. These patterns reflect both undernutrition and increasing access to energy-dense processed foods. Nutrition challenges are linked to food insecurity, limited dietary diversity, and public health education gaps, particularly in Hinterland Regions (FAO 2025; Global Nutrition Report Undated; WFP 2024).”

Notably, to address this, the study points to efforts by the local Ministry of Health in implementing targeted nutrition interventions for women and children under its 2022–2026 Food and Nutrition Security Strategy.

The study found that declining financial resources and rising costs have resulted in citizens choosing to purchase cheaper, less nutritious foods in smaller quantities. According to the study, “In 2024, 29% of respondents indicated that they were skipping meals or eating less to counter food costs as compared with 37% in 2023 (including 49% of women), while 5% reported going a day or more without eating.”

Exxon said that the rates were higher among low-income respondents, and 89% of those considered to have well below average incomes reported that they found it difficult to eat enough. “Coping strategies included use of financial savings to meet food needs, reduced essential non-food expenditures (including health and education expenses), and decisions to sell assets to pay for food and other needs (CARICOM and WFP 2024),” the EIA explains.

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• cost-of-living, EIA, eight project, Exxon, Longtail, Stabroek Block

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