THE price of gasoline in Region One (Barima-Waini) has reportedly increased as a result of a shortage of gasoline there due to the ongoing socio-economic crisis in Venezuela.

The Guyana Energy Agency (GEA) said though it has not received a formal notification of a fuel shortage in Region One, it is aware that there is a shortage. “Reports received have suggested that there is a shortage of gasoline in Venezuela, from where most of the fuel in Region One originates. This has naturally led to a reduction in gasoline imported into the region; the supply of diesel has been unaffected,” GEA Chief Executive Officer, Dr Mahender Sharma, told this newspaper.

In the Barima-Waini district, residents and business operators depend heavily on fuel imported from Venezuela. The imported fuel is checked at the port of Morawhanna; the authorities usually add a tax to the fuel when it arrives there before it is distributed by tradesmen to other parts of the region. However, due to the ongoing economic crisis in Venezuela, the authorities there have reportedly clamped down on the trade of fuel across the border – a move which is directly impacting the economy of Region One with locals being forced to pay higher taxi and minibus fares, which have risen by 100 per cent.
Regional Chairman Brentnol Ashley in an interview with the Guyana Chronicle on Tuesday, said the Barima-Waini district has been experiencing a shortage of gasoline for the past five weeks; however, the situation has worsened in recent days.

The shortage, he said, has resulted in an increase in prices. He explained that residents in Mabaruma and Moruca are left with no other choice than to pay between $8,000 to 10,000 for five gallons of gasoline, while over in the Matarkai sub-district, residents are being charged between $12,000 and $15,000. In the not-so-distant past, residents were paying between $2000 and $2,500 for five gallons of gasoline, according to the regional chairman
To cushion the impact, the regional chairman has recommended that government consider relaxing the $5,000 GRA tax on every barrel that is coming in until such time that we could have a smooth flow of fuel in the region, and that through GUYOIL, if they have a tanker to come to the region and sell to business persons, so that the prices could drop.

The GEA said it will keep track of the situation in the Barima-Waini district. “The GEA will monitor the gasoline situation in Region One and work with the regional administration, Guyana Revenue Authority and other stakeholders to address the situation. GEA is so far advised that the availability of gasoline remains at normal levels in the other regions,” Dr Sharma told the Guyana Chronicle.

In response to the claim of the “illegal” sale of fuel beyond Region One, Dr Sharma said: “The GEA seeks to maintain fair and reasonable competition in the energy sector. Once taxes have been paid on fuel imported, the GEA will not restrict the area within which an importer can sell his fuel, save and except for fuel imported specifically for use in Region One, which benefits from a lower tax rate.” In view of the reports, the GEA has committed to deploying its teams to the region to investigate the situation. Finance Minister Winston Jordan, when approached on the issue on Tuesday, said he was unable to confirm that there is a shortage. He said that government, however, will look into the reports.