Rising aircraft fuel prices to increase domestic airfares – AOAG president

Last Updated on Monday, 13 April 2026, 22:47 by Writer

Increases prices of aircraft fuels due to the United States (US)-Iran war will see domestic airline passengers paying more to travel to mainly interior locations, President of the Aviation Operators’ Association of Guyana (AOAG), Learie Barclay said Monday.

“There is no waiting it out. We’ve just had a price reduction so there isn’t really a margin to do much absorption. The prices will definitely rise. I can’t tell you by how much… The prices are definitely going to rise starting tomorrow (Tuesday),” he said.

He told Demerara Waves Online News that the cost of aviation gasoline increased by 11 percent and the estimated increased acquisition cost of aviation jet fuel could be in the vicinity of 75 percent.

Mr Barclay explained that aircraft with turbine engines would be “severely hit” by the cost of fuel, while piston engine aircraft would also see a rise in their fuel prices.

“We are (at) the lower end of the usage. We don’t have the amount of clout in terms of what we buy so we are one of the countries that will be affected the most by this,” he said.

Mr Barclay said fare increases would be lower than the cost of fuel, explaining that fuel is 38 to 40 percent of operational expenses.

He said from Tuesday, domestic airlines would have no choice but to pass on the hike in aircraft fuels to passengers.

He said once fuel prices rise, other prices , including those for parts, would see a rise in prices.

Mr Barclay said the AOAG has heard nothing from government about subsidising the cost of fuel and no discussion has started but he was optimistic that talks would be held.

In light of spiralling global oil prices, Mr Barclay urged that Guyana build its own refinery or have access to one nearby. “As a producer of raw materials, I think that we can produce our own avgas and avjet and bring the cost down,” he said.

The Guyana government has been making a pitch for Middle East oil producers to establish bulk storage facilities in Guyana to cushion the impact of global conflict on oil prices.

President Irfaan Ali recently floated the idea of having some of Guyana’s entitled oil refined at Trinidad and Tobago’s Petrotrin refinery when it is reopened.