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Govt immediately reduces gasoline, diesel prices

Last Updated on Wednesday, 6 October 2021, 21:38 by Denis Chabrol

Motorists will from Thursday begin paying less for gasoline diesel as government has cut the excise tax on fuel from 35 percent to 25 percent because world oil prices are now more than US$80 per barrel.

The Finance Ministry says the prices at the pump are expected to also be reduced immediately, with gasoline prices expected to reduce from $213 per litre to $198 per litre, and diesel prices from $200 per litre to $185 per  litre.

No mention was made of cooking gas and kerosene whose prices have also risen in recent months. Cooking gas is GY$4,000 per 20 pound cylinder.

Government last reduced the excise tax on gasoline and diesel on February 17, 2021 from 0 percent to 35 percent. But the Finance Ministry said since theb oil prices have continued to rise steadily on the world market, moving from over US$60 a barrel to over US$80 a barrel at close of trade on October 5, 2021.

Finance  Minister Ashni Singh said Minister Singh explained that the adjustment in the excise tax rate on fuel from time to time is part of the measures that the People’s Progressive Party Civic government will implement to cushion the domestic impact of world market price fluctuation.

He emphasized that implementation of these measures are in keeping with President Irfaan Ali’s commitment to “ensuring that Guyanese consumers continue to be protected from escalation in fuel prices on the world market as far as possible.”