Cabinet to review alternative oil import sources

first_imgGuyana will continue to import oil from the existing supplier, Petrotrin, while at the same time markets in non-Caricom Caribbean Islands are still up for consideration.A paper on approaches to mitigate supply disruptions was recently approved by the board of directors of GEA for Cabinet’s review, Chief Executive Officer, Guyana Energy Agency (GEA), Dr Mahender Sharma told the Government Information Agency (GINA).These approaches entail the identification of other markets, as well as mechanisms for improving storage capacity. Upon receipt of Cabinet’s approval of the paper, the recommendations would be pursued. This will help to satisfy the country’s demand for oil.Sharma explained that energy security concerns have been brought to the attention of the Caribbean Community (Caricom) Council for Trade and Economic Development (COTED) through several for a, particularly the 60th and 61st Special Meetings of COTED held this year.Currently, applications to purchase oil from other sources are made on a case-by-case basis following notification from Petrotrin in Trinidad and Tobago, on the availability of supplies.Approval for purchasing oil outside of Caricom has to be granted by the organisation. Participating member states want a more proactive approach in having the Common External Tariff (CET) for selected oil products imported reduced to zero percent, Sharma explained.COTED is in the process of reviewing CET and this study would inform further development in this regard. The Trinidad and Tobago Government and Petrotrin have committed to provide advance notice of product availability on a three-month basis, through an agreement with COTED as a means to guide short-term planning.Guyana has overtime experienced fuel disruptions from Petrotrin resulting in major oil companies having had to import from alternative regional and extra-regional sources. In efforts to mitigate local shortages, the Government sought waivers of the CET levied imports from outside of the region through COTED.The inconsistency in product availability due to unexpected shutdowns over the past three years has been the cause for considering alternative markets within and outside of the Region. COTED promotes trade and economic development of the Caricom and oversees the operations of the Single Market and Economy.last_img read more