GEORGETOWN, Guyana – Eight months after reducing the excise tax on fuel, the government has announced a further reduction that will see prices at the pump falling.
Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, announced on Thursday that Government would be lowering the excise tax rate on both gasoline and diesel from 35 percent to 20 percent with immediate effect.
“This reduction will aid in cushioning the impact on domestic consumers, particularly the traveling public as well as those productive sectors for whom fuel is an important input,” he said.
“The prices at the pump are also expected to be reduced with immediate effect.”
The tax reduction brings the rate to half of what it was in February.
On February 17 of this year, the government reduced the Excise Tax rate on gasoline and diesel from 50 percent to 35 percent.
Since that time, 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 the close of trade on October 5, 2021.
That steady rise in the world price has resulted in prices increasing on the domestic market also.
Minister Singh explained that the adjustment in the excise tax rate on fuel from time to time is part of the measures that the government will implement to cushion the domestic impact of world market price fluctuation.
He emphasized that implementation of these measures is in keeping with President Irfaan Ali’s commitment to ensuring that Guyanese consumers continue to be protected from an escalation in fuel prices on the world market as far as possible.