Could Guyana’s Refinery Plan Lower Fuel Costs?

Guyana produces oil, but still imports the gasoline and diesel its people use. Now it wants its own refinery.

President Irfaan Ali says a domestic refinery would anchor Guyana’s proposed national oil company, alongside expanded fuel storage. He’s aiming for greater supply security, lower fuel costs and eventually supplying the wider Caribbean.

But this is still a proposal.

So, is Guyana planning its own Petrojam?

In some ways, yes.

A refinery turns crude oil into usable products like gasoline and diesel. Jamaica has had that capability since Esso opened the Kingston refinery in 1964. The government bought it in 1982, establishing Petrojam. That gave Jamaica more control over fuel supply and kept part of the processing business at home, supporting transportation, aviation and industry.

But here’s the big difference: Petrojam processes imported crude. Guyana produces its own.

A refinery could allow Guyana to process some of that oil locally, capturing more value before it reaches consumers.

Does that automatically mean cheap gas?

No. Jamaica’s experience shows that local refining doesn’t disconnect fuel prices from international markets. Petrojam also imports finished products to supplement production. But this move by Guyana could strengthen regional fuel security if the refinery is efficient enough to compete with imported fuel.

Owning the oil is one advantage. Making the refinery work is another.

And that’s the bottom line.

Should Jamaica explore a fuel-supply partnership with Guyana?