Latest update March 24th, 2026 12:30 AM
Pres. Ali pushes profit margin cuts as oil prices climb
(Kaieteur News) – President Irfaan Ali has called on the private sector to adjust its profit margins in the interest of consumers, as the country navigates ongoing global economic pressures.
Speaking on Thursday at the 136th Annual General Meeting (AGM), the head of state said the government has been utilising all available macroeconomic tools, and businesses must now play their part.
“Here is where social responsibility from businesses comes in. When the state has maximised its tools, the private sector must support,” President Ali said.
President Irfaan Ali
He pointed out that the Guyana Oil Company (GUYOIL) is currently operating at a deficit and will need to at least break even to help stabilise the market. Against that backdrop, he urged businesses earning profit margins as high as 30–35 per cent to make adjustments.
“This is the time for you to make some adjustments in the interest of the consumers,” he stressed.
The president acknowledged that such discussions may be uncomfortable, but said they are necessary to foster genuine partnership between the government and the private sector.
“It is partnerships like these that allow citizens to see the real benefits of collaboration,” he added.
Fuel security and refinery talks resurface
At the same forum, President Ali also raised concerns about fuel security and freight costs, signalling that the government is revisiting discussions on establishing a local oil refinery.
This follows recent global oil price volatility triggered by escalating tensions in the Middle East. Prices surged after Iran intensified strikes on energy infrastructure in the region, including an attack on a major liquefied natural gas facility in Qatar.
Brent crude rose to U.S.$108.65 per barrel-its highest closing level since July 2022-after briefly climbing to U.S.$119 during trading. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) settled at U.S. $96.14 per barrel after touching U.S.$100 earlier in the day.
Amid these developments, President Ali said Guyana must strengthen its capacity to withstand external shocks.
He explained that increasing fuel storage capacity could help cushion price fluctuations, while a refinery would enhance national energy security.
““But now I believe we should return to the conversation of a refinery for national security, because this challenge has really opened up discussions globally and reinforces what the U.S. policy for the Western Hemisphere may be… That is, we have to, in this hemisphere, optimise our resources, optimise the development of our resources, optimise the development of our resources, for the protection of the hemisphere, for the economic viability of the hemisphere, for the energy viability of the hemisphere,” the president said.
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