Dear Editor,
The ill-placed critique on cost-of-living increases fails to consider the full picture of a government that has acted with empathy and strategic foresight, absorbing many costs through the Treasury to keep living expenses manageable for all Guyanese.
It is astonishing how the opposition and certain sections of the media continue to propagate a narrative that ignores the Herculean efforts and strategic measures our government has implemented to shield Guyanese from the worst effects of global inflation.
Government’s comprehensive approach has safeguarded our economy and enhanced the well-being of our people in these challenging times.
We tend to forget that during the COVID-19 pandemic, the price of every commodity escalated due to halted production. For instance, when Indonesia and Malaysia stopped exporting oil, the price of cooking oil surged by 300% and the domino effect of this increase resulted in the cost of shipping a 40-foot container from China skyrocketing from US$3,500 to US$20,000.
Global conflicts like the war in Ukraine and unrest in the Red Sea further strained the global supply chain, driving costs higher.
Despite these external pressures, our government led by Dr. Irfaan Ali, maintained an inflation rate below the regional average that was no accident. This stability is a direct result of strategic interventions and substantial treasury expenditures.
While other countries have faced massive increases in transportation and utility costs, Guyanese were insulated against such occurrences because the Guyana Power and Light Ltd (GPL) was allocated a large subsidy by central government, a decision that positively impacted both the business community and ordinary citizens.
Similarly, the government made significant efforts to reduce the cost of the burden of fuel by removing a 50% excise tax on gasoline and diesel, saving the population USD $384 million annually. This tax relief translated into a savings of approximately $500 GYD per gallon of fuel, significantly reducing transportation costs and thus the overall cost of living.
Government has indicated that since taking office, they have increased wages, salaries, and benefits by $90 billion while pensioners now receive $20 billion more annually.
These are just a few examples of how the government has mitigated the impact of global economic pressures on the local economy.
This Government has managed the complexities of global inflation, not with empty promises, but with strategic, people-focused actions.
Every time one buys fuel, pay their electricity bill, or turn on the tap, just know that government is working tirelessly behind the scenes, absorbing costs to shield you from economic hardships – a triumph for Guyanese.
Yours truly,
Anson Paul
