Govt. braces for cross-sector price increases in wake of US-Iran War – Pres. Ali

Apr 16, 2026 News

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(Kaieteur News) – President Irfaan Ali has said that Guyana’s Government is bracing for price increases across a number of sectors as a result of the disruption to the global supply chain amidst the ongoing US-Iran conflict in the Middle East.

His remark comes days after Guyana was impacted by widespread fuel shortage owing to delay in supplies and rise in global demands for the commodity.

In an address to citizens on a special edition of his Facebook diary series ‘Tea on the Terrace,’ President Ali spoke of the impact that the conflict has had on Guyana, the region and the rest of the globe.

Ali noted that for the region, the entire Latin America, and Caribbean, the issue has resulted in immense consequences.

The president said, “… This is an issue that every serious stakeholder, whether private sector or policy maker, this is an issue that is occupying important spaces of discussion.”

Ali emphasised that Guyana, as part of the global system, will import the challenges.

“We will import this inflation and will import the consequences of a conflict far beyond our shores. But we are part of a global system…So these are the long-term impact we in Guyana will have to navigate. It’s not a simplistic social media post. This is critical thinking, critical analysis, policy shift and policy reorientation, consistent dialogue, being on the phone, being in the discussions, being at the table, 24/7, to minimise the impact and disruption, and then coming up with an additional menu of measure that will continue to safeguard our ecosystem, to minimise the impact on the Guyanese population…”

He noted that the consequences of the war are not only immediate, but a long-term impact of rebuilding the disruption in global supply chain, the destruction of important and critical global infrastructure.

“This conflict has resulted in the destruction of key infrastructure that would enable price stability whether its refined products and all products associated with gas, petrochemicals, including, of course, fertiliser, glass, and mineral, everything that is linked to the energy ecosystem.”

The president explained that given the current projections and the level of disruption, the impact would be felt in the coming year.

“I want us to understand that the consequences of this war are not short term, it has already taken place now, first of all, we have to understand that this crisis, this war, has led to a global energy crisis, and it has created the largest supply disruption in the history of the Global Supply System, according to IEA, that is International Energy Agency…”

“We have to understand this that we are operating in a period of global history when the largest supply disruption has taken place in the global oil market. The Hormuz chokepoint, as it is defined, is a narrow waterway. But this narrow waterway is a critical checkpoint through which approximately 21% of global oil supplies pass through per day. That is equivalent to 15 million barrels crude per day and 6 million barrels of petroleum products per day. So, every single day, you have 21% of global oil supplies disrupted.”

According to President Ali, supply chain shocks are now causing severe disruptions to all nations, which are dependent on imported gas, fuel, fertiliser and refined products.

“Policy makers must understand this. They must understand the implications of this, and stop monkeying themselves around as if we are operating in a normative environment. These are the realities the world is operating in. If you look at the supply shocks and the destruction in the global economy, what would this contribute to one already, the assessment the world food programme has estimated that the conflict will push 45 million additional people into acute hunger by mid-2026 potentially reaching record levels of global hunger.”

He noted that Guyana is one of the few countries in the world and perhaps the only country in the region that has completely removed excise tax, taxes on fuel import refined products.

“The conflict caused prices of crude oil to skyrocket in several waves, early March, we saw the initial volatility. Prices went to $82 per barrel within days of the conflict…The current status is despite the April 8 ceasefire, prices continue to hold at $115 due to ongoing infrastructure assessment and shipping delays… You have to understand that transport costs increase, which means that all goods and services costs will be impacted,” the president said.

He explained that the burden of the surge in oil prices has trickled down to consumers globally. “The region is highly vulnerable to its dependence on imported fuel for power, to agriculture, to tourism and all of that, it is expected that this region will face a massive impact. Already, we are seeing the aviation sector adding a fuel surcharge that will affect tourism.”

To this end, the head-of-state noted that the world is reorienting its system as a result of what is taking place; the trickledown effect on these fuel hikes has hit the global delivery system.

“We see major logistic providers like FedEx, Amazon and USPS have implemented or increased fuel surcharges in response to the rising cost of diesel and jet fuel,” he said.

Meanwhile, Assistant Secretary-General (Ag.) of CARICOM, Dr. Wendell Samuel, has called for action to address the impact of the Middle East conflict on the Caribbean.

Dr. Samuel made the statement during a virtual dialogue on April 10 hosted by the Food and Agriculture Organisation of the United Nations, the Trinidad Guardian reported.

The discussion examined effects on Latin America and the Caribbean, with focus on food security, agriculture and macroeconomic stability.

Dr. Samuel said CARICOM has developed a draft response matrix to address fallout from the conflict. He said the matrix will be presented to regional ministers of agriculture for consideration, adoption and implementation.

He said the matrix links external shocks to policy responses and outlines measures for implementation. It includes short-term measures and long-term actions and promotes regional coordination.

Dr. Samuel said priority areas include coordination in procurement, logistics and reserves, investment in energy and food systems, policy alignment and strengthening of regional institutions.

He said regional economies are affected by global shocks through energy markets, food systems and supply chains.

Dr. Samuel said the region depends on imports of food, fuel, fertilisers and shipping services. He said this exposure can transfer external developments into domestic economic conditions.

According to him, inflation, food access and fiscal stability are current policy concerns. He said there is need to assess how impacts are transmitted and to advance coordinated responses.

Dr. Samuel said decisions taken now will affect the region’s response to the current situation and future global developments.

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• CARICOM, Middle East, price increases, US-Iran War

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