Authorities Does Not Monitor Gasoline Prices However Can’t Management Worldwide Oil Costs – Dr. Singh – Information Room Guyana

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From Vishani Ragobeer

There was a spike in local fuel prices and the senior finance minister in the President's office, Dr. Ashni Singh says the government has been monitoring this situation, but stressed that the government has no control over international oil prices.

Dr. Singh said so on Saturday while participating in a National Insurance Scheme (NIS) organized outreach activity at Giftland Mall in Georgetown.

According to him, global oil prices have risen, which has had a negative impact on local fuel costs.

"The reality is that oil prices are a function of the international market and therefore the cost of landing fuel has increased," explained Dr. Singh.

However, he recalled that it was only a few months ago that the government took the "important step" of lowering excise taxes on fuel products to enable fuel costs to be reduced.

In February, Minister Singh announced that the excise tax rate for both gasoline and diesel would be 50 per. should be reduced in order to minimize the impact on domestic consumers, in particular the traveling public and the productive sectors in which fuel plays an important role, with immediate effect to 35 percent.

Dr. However, Singh stated that taxes are only a small fraction of the fuel costs consumers pay when they fill up at the pump. Therefore, other factors that lead to an increase in fuel costs must also be taken into account when reducing excise duties.

He went on to explain: “The reality is that the CIF of fuel is much higher now than it was six months ago.

“It's something we have to look at over and over again. We are looking at this very carefully and we are aware that prices have increased and what this has meant for companies operating in Guyana, ”said the Senior Minister.

In context, Cost, Insurance, and Freight (CIF) is an expense paid by a seller to cover the cost, insurance, and freight of a buyer's order in transit.

Checks made at the major gas stations in Georgetown show Shell's price at: Fuel Save – $ 207.0 per liter, V-Power – $ 212.0 per liter, Diesel – $ 185.0 per liter; the Rubis Vlissengen Road gas station: Pure 95 gasoline – $ 210 per liter, diesel – $ 189 per liter; GuyOil's Super 95 gasoline costs 203 USD per liter, Ultra Low Sulfur Diesel 190 USD, and kerosene 125 USD per liter.

Georgetown Chamber of Commerce and Industry (GCCI) President Timothy Tucker said local businesses have been hit hard by gas prices but noted that in the pandemic-driven economy, there is even more pressure on ordinary consumers.

“It's a double situation for Guyana because we're now an oil exporter, so we actually benefit from rising prices as an exporter or crude, but as a consumer we put ourselves at a disadvantage … it automatically affects everyone's day-to-day operations. “He had told the newsroom.