Minister of Finance Dr. Ashni Singh yesterday announced a further cut in the excise tax on gasoline, in light of the recent increase in fares by minibus operators.
The Government Information Agency (GINA), in a press release, stated that with effect from yesterday, the excise tax charged on gasoline would drop from 15% to 10% and decision was taken in light of the rise in the imported cost of gasoline.
The release added that the acquisition price on the last shipment of gasoline bought by GuyOil was US$142.85 per barrel, which is an increase of 19.7% above the acquisition price of US$119.32 per barrel at the end of last year.
GINA said that the reduction of the excise tax rate on gasoline would allow GuyOil to continue to retail gasoline at $980 per gallon, resulting in no increase in public transportation fares to commuters. “The government would continue to closely monitor the acquisition cost of refined fuel products and would make the appropriate interventions by adjusting the excise tax rates in order to minimise any adverse consequence on the economy from higher fuel prices on the world market,” GINA said yesterday.
The United Minibus Union, which is responsible for hiking fares in several different zones, had suggested earlier this week that if the government wanted fares reduced, it would have to subsidise the cost for gasoline. However, yesterday Union President Eon Andrews said that he was unaware of the excise tax cut and as a result could not comment on it. He also maintained that operators would continue to charge the increased $80 per short drop.
Meanwhile, minibus operators complained that at some GuyOil service stations, they are being sold tainted fuel, which damages their vehicles and ends up adding to their expenses.
Andrews told Stabroek News that unless the Government sits down and has discussions with the Union, it will continue to charge $80 per short drop and sourcing fuel from non-GuyOil petrol dealers.
