GUYANA (Commonwealth Union)_ According to a notice from the Ministry of Finance on Saturday, the government has reduced the price of gasoline and diesel from the Guyana Oil Company Limited (GUYOIL) in an effort to further relieve consumers nationwide.
Dr. Ashni Singh, a senior minister in the Office of the President responsible for finances, today made an announcement on behalf of the government on a decrease in the price of gasoline and diesel at the pump, which will be levied by the Guyana Oil Company Ltd. (GUYOIL).
The following price reductions will be made to GUYOIL’s pump prices: gasoline will be decreased by 20% from $269 per litre to $215 per litre and diesel will be reduced by 15% from $265 per litre to $225 per litre. The anticipated start date for these improvements is October 2, 2022.
Global oil prices increased by more than 50% in the first half of 2022, from US$77 per barrel at the end of December 2021 to US$120 in June of this year. They even reached a high of US$137 per barrel as a result of the Russian invasion of Ukraine. Given the interconnectedness of the world economy, the impact of the sharp increases in oil prices was significant and resulted in increased fuel landing costs in Guyana.
The government reduced the excise tax rate on gasoline and diesel from 10% to 0% in March of this year in an effort to lessen the effects of rising global fuel prices on domestic consumers and the productive sectors for whom fuel is a major input. Recall that the Government reduced the Excise Tax on both gasoline and diesel from 20% to 10% during the Budget 2022 presentation in order to lessen the effects of rising international oil prices.
The government has gradually reduced the excise tax rate on gasoline and diesel, from 50% to 35% in February 2021 and from 35% to 20% in October 2021, in line with its strategy of adjusting fuel taxes to lessen the effects of growing fuel costs on the global market.
In a continuous attempt to address these concerns head-on and lessen the effects of rising prices globally on all Guyanese people, the PPP/C Government has put in place a number of measures since taking office in August 2020 to reduce cost of living pressures and enhance discretionary incomes.
One of the many initiatives the government has put into place since taking office is the reduction in excise taxes.
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