Fuel rush grips Guyana – Kaieteur News

…Pres Ali summons importers as long lines, shortages hit pumps

The scene at Guyoil Service Station on Regent following reports of fuel shortage.

By Rehana Ramsay

(Kaieteur News) – Amid a rush at fuel stations across Guyana following growing shortages at the pumps, President Irfaan Ali yesterday moved to calm the situation, convening an urgent meeting with fuel importers at State House.

During the high-level engagement, the Head of State was assured that efforts are already underway to ease the supply crunch, with shipments expected to begin arriving as early as last night.

Importers briefed the President on a combination of shipping delays and logistical setbacks that have disrupted supply chains, triggering panic buying and long lines at gas stations across the country. State-owned Guyoil indicated that while incoming shipments are expected to bring some relief, additional supplies are also being sourced to meet the spike in demand. The government, officials said, is closely monitoring the evolving situation to prevent prolonged disruption.

At Palmyra, Canje in Region Six (East Berbice-Corentyne) scores of vehicles in queue at the fuel station.

Also present at the meeting were Prime Minister Mark Phillips, Minister of Public Utilities and Aviation Deodat Indar, and Head of the Guyana Energy Agency, Dr. Mahender Sharma. The developments come against the backdrop of rising global oil market instability, raising concerns that external shocks could continue to impact local fuel availability if supply chains remain strained.

Reuters reported on Monday that the sharp hit to global oil production from the Iran war is poised to flip the oil market into a supply deficit this year, analysts say, a huge swing in forecasts that erases previous expectations of comfortable oversupply. The conflict, which began on February 28 with U.S. and Israeli strikes on Iran, has effectively stalled flows through the Strait of Hormuz, a passageway for about a fifth of global oil consumption. Production shut-ins and attacks on energy infrastructure have also cut deeply into output.

These immediate shocks are expected to translate into an average production loss of 2.13 million bpd across the entire year, analysts said in the poll. They expect the market to see its steepest deficit in the second quarter – averaging around 3 million bpd – before tipping back into a surplus of 1.4 million bpd in the fourth quarter. Analysts warn, however, that projected deficits could steepen depending on how long disruptions through the Strait of Hormuz persist. Flows through the strait remain constrained, with traders reporting no clear signs yet of a sustained resumption in shipments since a ceasefire was announced on Tuesday. An ⁠estimated 136 million barrels of crude oil and products are stuck in the Gulf due to the conflict, said Vikas Dwivedi, global energy strategist at Macquarie Group. Clearing that backlog is likely to take time. Many shippers still face challenges in spite of the ceasefire, with reports of Iran planning to charge fees to ships transiting the Strait of Hormuz.

The traffic lines in Essequibo, Region Two.

Long lines

Meanwhile, during a drive through Georgetown on Monday Kaieteur News observed long lines at fuel stations and frustrated motorists. “The gas stations are rationing the gas. They telling you that you can only get $3,500, that can hardly get me around where I want to go,” one bus driver told this newspaper outside the Mobil Service Station on Camp Street.” He said he had been in a long winding line for about 30 minutes. Additionally, some gas stations were forced to temporarily close their operations due to a lack of fuel.  Several Mobil outlets were the first to run out of fuel forcing consumers to rely on other suppliers such as Rubis and Guyoil.

Owing to the overwhelming demand, the remaining service stations have however placed a cap on the purchase of fuel. Consumers are only allowed to purchase $3000-$3500 worth of fuel at a time. Drivers and motorcyclist swarmed several gas stations on Monday causing major congestion on several main city corridors.

Also ‘No fuel’ signs were seen at several stations as frustrated commuter questioned whether there will be relief soon. At Guyoil on Regent Street pump attendants were all hands-on deck. They claimed the station had sufficient to supply for the regular quota of consumers per day. “So far we can’t say we have a shortage because our supply is enough for our normal quota of customers, but as the demand continues we will soon face a limitation.”

At Palmyra, Canje in Region Six (East Berbice-Corentyne) scores of vehicles in queue at the fuel station amidst the sharp decline in fuel supply across the country.

This sudden development has cornered drivers into desperation, as many flock to services stations, many of which have either been closed or vending the resource moderately. A commuter told Kaieteur News that “drivers are worried particularly those that transport people from Georgetown to New Amsterdam and Georgetown to Skeldon.” A similar scene has unfolded in Region Two Essequibo where drivers were lining up to refuel their tanks.

The fuel shortage comes weeks after the war in the Middle East affected a major transshipment route for fuel around the globe. Countries like Australia, Ireland and Mozambique have already reported a rise in oil prices and shortage of fuel supply. Guyana was already facing a hike two weeks after the Guyana Oil Company (GUYOIL) assured consumers of its “strict regulatory and compliance framework” to safeguard consumers from “undue market volatility”, the state-owned entity has slapped on extra costs on all of its fuel products with no official notice to consumers.

Back in March fuel prices at the pumps soared pass $200 per litre of gasoline, which continued to fluctuate. Over the weekend, GUYOIL’s website advertised gasoline at $190 per litre; $198 per litre of diesel, $155 for kerosene and $215 per litre of its Ultra Low Sulphur Diesel (ULSD).

While other service stations increased their fuel prices two weeks ago, GUYOIL maintained its prices, selling gasoline for $170, diesel for $190 and kerosene at $155 per litre.