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Norton proposes fuel subsidy to stabilise prices

Last Updated on Wednesday, 15 June 2022, 12:24 by Denis Chabrol

Opposition Leader Aubrey Norton is recommending that the government subsidise the cost of fuel , amid steadily rising prices at the pump.

Mr. Norton says the Guyana government should use some of the money from the price windfall to stabilise the prices of gasoline and so prevent a rise in cost of living.

“The government should ensure gas prices do not increase above a determined level by compensating suppliers for any price increases where the excise tax reductions have already been exhausted. This will help to bring prices down across a wide basket of goods, thereby easing the cost of living crisis,” he said.

Mr Norton says this approach should be taken where the excise tax reductions have already been exhausted.

Vice President Bharrat Jagdeo has said that nothing more can be done at this time to ease the price crunch on fuels because the excise tax is no longer being charged on imported fuels.

Global oil prices have been skyrocketing ever since Russia invaded Ukraine, triggering a virtual blockade of Russian oil exports.

Guyana, being an oil producer,is also earning more per barrel on crude exports.

This has been coupled with a glut in wheat supplies, causing a spike in wheaten flour products.

The Guyana government has already decided to absorb the cost of  water electricity to domestic and commercial consumers.