Guyana faces mass fuel shortage due to Iran situation

Published: 2026-04-15 08:15:08 ET XOM

Published on 04/15/2026 at 08:15 am EDT

Guyana's emergence as one of the world's fastest-growing oil producers has collided with a harsh operational reality: the country cannot refine its own crude, leaving it vulnerable to fuel shortages even as production hits record levels.

Gas stations across Georgetown closed or rationed supplies in recent weeks as disruptions linked to the Iran war constrained imports. The shortage exposed a fundamental gap in Guyana's energy infrastructure despite crude production from ExxonMobil's Stabroek Block averaging a national record of 918,000 barrels per day (bpd) in February.

The approximately 25.7mn barrels produced across the month were distributed across four projects: Liza 1 at 129,000 bpd, Liza 2 at 261,000 bpd, Payara at 264,000 bpd and Yellowtail at 264,000 bpd. Yellowtail, which reached its initial 250,000 bpd target in late 2025, is now running at roughly 263,000 bpd, with ExxonMobil awaiting government approval to study whether output could be lifted further to 290,000 bpd.

President Irfaan Ali convened fuel importers on April 13 to secure additional shipments. 'I've been assured that shipments are expected as early as tonight, with additional supplies already being sourced to meet national demand,' Ali said in a press statement, adding that the government is monitoring supply levels to maintain stability.

The Guyana Energy Agency reported gasoline import costs surged 38.5% between February 22 and March 17, amid disruptions in global oil markets linked to the Iran conflict. Tensions in the Middle East have affected shipments through the Strait of Hormuz, a route carrying approximately one-fifth of global oil trade, contributing to supply constraints.

The episode has reignited debate over domestic refining capacity. Nicholas Deygoo-Boyer, Director of Vreed-en-Hoop Shorebase Inc., argued for local refining infrastructure.

'We are a large producer of crude oil. Still, we do not control our fate or our destiny in terms of refined products,' he told OilNOW. 'Having a refinery definitely gives you far more control over your fate in terms of, well, not being subject to shocks.'

The strategic calculus now centres on whether Guyana should invest in refining capacity or continue relying on imports whilst building strategic reserves. As production continues climbing and geopolitical disruptions remain persistent, the country faces a fundamental question about energy sovereignty: whether pumping nearly a million barrels daily provides genuine economic security without the infrastructure to convert that crude into usable fuel.