The Alliance for Change (AFC) is calling on the Dr Irfaan Ali-led government to subsidize flour following a 15% increase in prices announced by the flour company several days ago.
“Since the Russian invasion of Ukraine, the price of oil and food staples have seen a significant increase that has made the skyrocketing cost of living much more difficult for the Guyanese people to shoulder. However, we must recognize the fact that while the people suffer and struggle to meet inflated prices, the Government is expected to see significant increases in revenues from the nation’s oil exports,” the AFC said.
It added that oil prices today stand at $105 USD per barrel. This is about $35 higher than the 2021 average price of $70.
World wheat prices stand at $370 per ton.
“With Guyana reportedly importing 55,000 tons in 2019, it will cost the state less than $6 million USD to cover the full cost of the recent 40% spike in wheat prices. That’s approximately a mere 1% of the extra revenues that Guyana will earn in 2022 from the $35 increase in oil prices when compared to the 2021 average,” the opposition party reasoned.
It said that the state can “easily afford” to cover the cost of increased wheat prices by simply redirecting a small part of its increased oil revenues to keep the cost of flour affordable for those struggling in poverty.
