BUDGET 2026: Fuel relief, freight reductions and $9B targeted ‘cost of living’ support

In Budget 2026, the Government of Guyana has reaffirmed its commitment to easing the cost of living for citizens through a series of targeted measures designed to mitigate everyday expenses.

Since March 2022, the Government has maintained a zero percent excise tax on petroleum products, foregoing an estimated $100 billion in annual revenue. This policy has provided households with approximately $500 in savings for every gallon of diesel or gasoline purchased.

Despite current moderation in global oil prices, the Government has announced that this measure will continue in 2026, shielding citizens from energy price volatility.

To further reduce household and business expenses, the Government will extend the reduction in freight charges for import taxes to pre-pandemic levels for another 12 months, from January 1 to December 31, 2026. This initiative, which has already saved consumers over $28 billion since 2021, is projected to cost $6 billion this year, offering substantial relief to importers and ultimately consumers.

Beyond fuel and freight, the Government will continue a consultative approach with households, businesses, and stakeholders to identify and implement cost-of-living interventions. For 2026, $9 billion has been set aside to fund targeted programmes that support the most vulnerable while easing financial pressures for all Guyanese.

These measures reflect a strategic, multi-pronged effort to maintain affordability and stability in household budgets amid ongoing global economic challenges.