Oil Refinery in Guyana

Apr 17, 2026 Letters

Dear Editor,

I write to underscore, with renewed urgency, the strategic imperative for the establishment of a domestic oil refinery in Guyana. Recent developments, both globally and within our own energy sector, have laid bare a structural vulnerability that can no longer be managed through temporary measures or external arrangements.

Guyana today stands at a paradoxical crossroads, we are a rapidly emerging oil-producing nation, yet we remain dependent on external refining capacity to meet our domestic fuel needs. This disconnect between production and processing is not merely an economic inefficiency, it is a national vulnerability. As recent geopolitical tensions have demonstrated, exogenous shocks—particularly those emanating from instability in the Middle East in which can swiftly disrupt global supply chains, inflate prices, and threaten the reliability of refined fuel imports.

The Government’s swift response to the recent gasoline supply concerns was commendable and necessary. However, such interventions, while effective in the short term, do not address the underlying structural gap. Reliance on imported refined products leaves Guyana exposed to volatility in international markets, limits our ability to stabilize domestic prices, and constrains long-term planning across key sectors of the economy.

It is within this context that President Irfaan Ali’s renewed engagement with regional and international partners including the Dominican Republic must be viewed with a sense of urgency. While refining partnerships may offer interim relief, they should not substitute for a clear and deliberate national policy aimed at establishing domestic refining capacity.

The case for a Guyana-based refinery rests on three pillars:

First, energy security. A domestic refinery would insulate Guyana from external supply disruptions and reduce exposure to geopolitical shocks. It would ensure continuity of fuel supply for transportation, industry, and essential services, even in times of global uncertainty.

Second, economic transformation. Refining adds value to our crude oil, creating downstream industries, generating employment, and expanding the industrial base. It allows Guyana to capture a greater share of the energy value chain rather than exporting raw resources and importing finished products at a premium.

Third, regional leadership. With careful planning, Guyana can position itself as a refining hub within the Caribbean and northern South America, supplying not only domestic demand but also contributing to regional energy resilience. This aligns with broader CARICOM objectives and strengthens Guyana’s role as a driver of regional integration.

To be clear, the question is no longer whether Guyana should pursue a refinery, but how and when. The Government must now move beyond exploratory discussions and signal a firm commitment through feasibility studies, investor engagement, and policy frameworks to advance this project. Strategic partnerships, including those with the Dominican Republic and Trinidad and Tobago, should be structured to complement, not replace this national objective.

Guyana’s oil wealth presents a rare and historic opportunity. To fully realize its benefits, we must ensure that our energy architecture is not externally dependent, but internally resilient. A domestic oil refinery is central to that vision.

I respectfully urge that this matter be advanced as a priority within the Government’s energy strategy.

Yours Respectfully,

Dr. Tilokie Depoo,

Economist

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CARICOM, Dr. Tilokie Depoo, Guyana Oil, Letters, oil refinery

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