Guyana is considering the creation of a national oil company that would focus on strengthening the country’s fuel supply and energy security, with plans for a domestic refinery at the centre of the proposal.

President Irfaan Ali said the proposed company would not be created to produce crude oil or invest directly in offshore petroleum operations. Instead, it would take a broader approach to managing Guyana’s fuel supply and supporting the country’s long-term energy needs.

Despite becoming a major offshore oil producer, Guyana still imports the gasoline and diesel used locally. This leaves consumers and businesses vulnerable to changes in international fuel prices and possible disruptions to global supply.

Ali said a domestic refinery could give Guyana greater control over its fuel supply and offer some protection from price shocks. The government is also examining ways to significantly expand the country’s fuel storage capacity.

Current proposals range from storing enough fuel to cover 30 days of national demand to as much as 120 days. Ali said the country’s existing storage facilities are not sufficient to support Guyana’s growing development needs.

The plans come as Guyana continues to increase oil production and looks for ways to use its petroleum sector to strengthen other areas of the economy. A domestic refinery could reduce the country’s dependence on imported refined fuel while improving its ability to respond to disruptions in international markets.

Looking ahead, the government also sees potential for Guyana to become a fuel supplier to other Caribbean Community countries. Expanded refining and storage capacity could allow the country to play a larger role in the regional energy market.

Ali said Guyana must position itself as an important supplier as it continues to develop its oil and energy sector.