HGP Nightly News – President Irfaan Ali says Guyana cannot cash-grant its way out of the cost-of-living crisis, warning that lasting relief will require the government to confront the forces driving up food, transportation, energy and other household expenses.
Speaking at a press conference on Tuesday, Ali acknowledged that prices remain high despite tax reductions, subsidies, cash transfers and support for farmers.
“No amount of grant will address it,” the President declared, describing the problem as “multidimensional” and requiring more structural solutions.
Ali said greater attention must be paid to the journey products take from farms and factories to store shelves—and to the mark-ups added before they reach consumers.
Farmers have repeatedly complained that they receive comparatively low prices for produce that is later sold to consumers at significantly higher rates, he noted.
The President suggested that the government may need to expand farmers’ markets, allowing producers to sell directly to consumers and reducing the number of intermediaries along the supply chain.
Such markets could potentially lower distribution costs and provide farmers with a greater share of the final selling price. However, their success would also depend on transportation, storage, accessibility and whether consumers find them convenient.
Ali also pointed to changing shopping and eating habits as another factor affecting household expenditure.
More Guyanese are purchasing groceries from supermarkets instead of traditional markets, while families are eating out more frequently and cooking less at home than they did several years ago, he argued.
Those choices may increase spending, but they do not fully explain price increases affecting essentials purchased regardless of where families shop.
The President acknowledged that some inflationary pressures originate outside Guyana.
Despite being a major crude-oil producer, the country imports refined petroleum products. International increases in fuel prices can consequently raise local transportation, electricity, agricultural and production costs.
Higher fuel costs can also reach consumers indirectly through increased fares and the expense of moving goods across the country.
The government has introduced several measures intended to cushion those effects. These include removing the excise tax on gasoline and diesel, eliminating tolls on major bridges and providing transportation assistance to pensioners and students.
Budget 2026 also provides for the return of the G$100,000 national cash grant, which the government expects to inject approximately G$60 billion into the economy.
Ali’s latest remarks, however, signal that the administration accepts that direct financial assistance offers only temporary relief if the underlying prices of essential goods and services continue climbing.
He said the next phase of the government’s response must examine production expenses, transportation costs, distribution margins and consumer behaviour.
The President also identified bottled water as a recurring expense for families.
He noted that workers buy it while on the job, children purchase it at school and older people often pay for it while travelling to conduct everyday business.
In February, Ali called for all bottled water consumed locally to be produced in Guyana within 12 months, arguing that a country with abundant freshwater resources should not depend on imports.
That proposal has since opened another debate: whether the government should establish its own production facility or create conditions for private manufacturers to expand.
The Guyana Manufacturing and Services Association has raised concerns about a proposed G$496.3 million state-owned bottled-water plant, arguing that taxpayers’ money should not be used to compete with established private businesses.
Ali said the government should generally focus on creating the conditions for companies to produce and compete, while retaining the option to intervene where essential commodities require a different approach.
His comments leave the administration facing two immediate challenges: delivering relief to families struggling now while pursuing longer-term reforms that may take significantly more time to affect prices.
