HGP Nightly News – As tensions in the Middle East drive oil prices higher, Guyanese businesses are preparing for the ripple effects of inflation that could soon reach local shores. The warning comes from Nicholas Deygoo-Boyer, director of Vreed-en-Hoop Shore Base Inc. (VEHSI) and National Hardware Guyana Limited, who spoke candidly about the challenges during an appearance on the Starting Point podcast.
Deygoo-Boyer explained that shipping companies have already notified importers of rising costs, a reality that will inevitably be passed on to consumers. “Nobody’s happy about this. It’s not profiteering, it’s survival. These are costs that have to be absorbed, and for many businesses, especially those expanding with debt, it’s a heavy burden,” he said.
The businessman stressed that while government measures, such as rolling back freight charges to pre-pandemic levels and maintaining zero excise tax on fuel, have cushioned the blow since 2020, Guyana cannot escape the impact of global shocks entirely. He argued that the country must now consider long-term solutions, including the feasibility of a refinery or a strategic fuel reserve.
The Strait of Hormuz, a narrow but vital artery for global oil shipments, has become the focal point of escalating conflict involving Iran, Israel, and the United States. Airstrikes on Iranian energy infrastructure and retaliatory attacks have heightened fears of supply disruptions, sending markets into turmoil. Analysts warn that prolonged instability could trigger spikes in fuel prices, shipping costs, and broader trade disruptions worldwide.
Deygoo-Boyer’s comments come just days after President Dr. Irfaan Ali reignited discussions on establishing a national refinery. The president emphasized that regional energy security is critical to safeguarding economic stability in the Western Hemisphere. For business leaders like Deygoo-Boyer, the debate is no longer theoretical, it is about survival in a world where global conflicts can quickly translate into local hardship.
