Georgetown, Guyana.
March 15, 2022
For immediate release to all media houses.
ALLIANCE FOR CHANGE PRESS RELEASE
AFC calls on the PPP administration to Subsidize Flour
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.
Oil prices today stand at $105 USD per barrel. This is about $35 higher than the 2021 average price of $70 bbl.
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 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.
Subsidize flour now and undo the 15% increase in the cost of this most basic food staple.
END.
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