Guyana to purchase lower-cost jet fuel from Venezuela

GEORGETOWN, Aug 30, 2010 (AFP) - Guyana is to purchase lower-cost jet fuel from neighboring Venezuela to reduce airfares and attract new airlines, President Bharrat Jagdeo said Monday.

He said the state-owned Guyana Oil Company would be used to import jet fuel from Venezuela and the country would benefit from increased passenger-flow even though profit would not be significant.

"Even if they don't make much on the profit-margin, we get the benefit in cheaper travel and people coming home, and the departure taxes that they pay so you make it back on the other side and the tourism product grows," he told reporters.

The jet fuel would not be purchased under the Petrocaribe concessionary oil-payment facility, created by Venezuela in 2005.

Sol and Texaco currently sell aviation jet fuel at five US dollars per gallon while Guyana hopes to purchase it for at least 2.35 per gallon.

A group of Greek investors are planning to base an airline in Guyana that would fly to the Caribbean and North America.

"If we can bring that (fuel) price down, it makes it very attractive to have a home-based airline," said Jagdeo.

The Guyana government could get a free equity stake in a new Guyana-based Greek airline in exchange for tax concession.

Guyana has consistently quarreled with the Trinidad and Tobago-owned Caribbean Airlines over its expensive fares.



(c) 2010 AFP