Last updated on Wednesday, February 17, 2021, 10:18 PM by Denis Chabrol
The Guyana government announced on Wednesday evening that gasoline and diesel prices are expected to fall due to a cut in excise taxes on fuels to cushion the impact of a surge in global oil prices to more than $ 60 a barrel.
Finance Minister Dr. Ashni Singh announced on Wednesday evening that it would cut the excise tax rate on gasoline and diesel to minimize the impact on domestic consumers, especially the traveling public, as well as the productive sectors, for which fuel is an important input, from 50 percent to 35 Percent effective immediately.
The government said that as a result of the cut in excise tax rates, the price at the pump will also be reduced with immediate effect. In particular, gasoline prices are expected to decrease from 184 GYD per liter to 170 GYD per liter and diesel prices from 170 GYD per liter to 160 GYD per liter.
Treasury Secretary Singh noted that world oil prices have risen steadily in recent months, from $ 35 a barrel at the end of October 2020 to over $ 60 a barrel at the close of trading on Wednesday. "As a result of this steady increase in the world market, fuel prices have also increased in the domestic market," he said.
The government normally adjusts the rate of excise duty on fuel from time to time to cushion the domestic effects of world price fluctuations and that the current tax adjustment is made using this pre-established mechanism.
The finance minister was quoted in a government statement as saying that the downward revisions in gasoline and diesel prices “are in line with the strong continued commitment of President Irfaan Ali's government to ensure that domestic customers are protected from major global price escalation the market and the cost of living will rise. "
Barbados and St. Lucia recently increased the prices of all major fuels including cooking gas due to the rise in world oil prices.