Motorists to pay less for gasoline, diesel from Sunday

Last Updated on Saturday, 1 October 2022, 20:00 by Denis Chabrol

Finance Minister Dr Ashni Singh on Saturday announced that motorists will from Sunday pay 20 percent less for gasoline and 15 percent less for diesel.

While government’s decision is only for fuels being sold by the state-owned Guyana Oil Company (GUYOIL), eventually other suppliers may reduce their prices.

In a statement issued Saturday night, the Finance Minister said gasoline price would be reduced from GY$269 per litre to $215 per litre; and diesel prices  from $265 per litre to $225 per litre.

The Guyana government on Saturday did not state the method that was used to reduce the fuel prices since the remaining 10 percent excise tax on fuel was in March, 2022 reduced to zero to cushion the impact of rising global fuel prices on domestic consumers and the productive
sectors to which fuel is a key input

Official figures show that during the first half of 2022, global oil prices surged more than 50 percent, increasing from US$77 per
barrel at the end December 2021 to US$120 in June of this year; having risen as high as US$137 per barrel primarily as a result of the Russian invasion of Ukraine.

During the Budget 2022 presentation, the government lowered the Excise Tax on both gasoline and diesel from  20 percent to 10 percent,

The Government said it has been progressive lowering the Excise Tax rate on both gasoline and diesel, from 50 percent to 35 percent
in February 2021, 35 percent to 20 percent in October 2021.