GEORGETOWN, Guyana – The Guyana government has announced a ten per cent reduction in the excise tax on gasoline even as the price for the commodity on the global market increases.
Finance Minister Dr Ashni Singh said with effect from today the excise tax charged on gasoline would be reduced to 20 per cent.
“Government is implementing a drastic cut to the excise tax charged on gasoline and the necessary instructions have been issued to reduce [it] by one third,” Singh said in a statement.
Last month he announced a five per cent reduction in the tax on diesel, while there is no tax on kerosene.
Singh said while crude oil was trading at prices in excess of US$100 per barrel and as high as US$115 per barrel in some markets, local oil companies were actually sourcing refined petroleum products from their established suppliers at prices in the range of US$130 per barrel.
“The quoted price for the last shipment of gasoline loaded for Port Georgetown was registered at US$126 per barrel, while the corresponding price for diesel stood at US$131 per barrel.” Singh said, adding that “while the extraordinary external price increases observed are the result of well known developments in the major oil producing centres including, especially the Middle East, they have the potential to exert significant impact on economies that are large oil importers and small economies dependent on imported oil”.
Singh said the move by the Bharrat Jagdeo was made specifically with the intention of minimising the impact of these adverse external developments on the domestic consumer and on the productive sector. (CMC)
