The excise tax on gasoline has been reduced to seven percent, down from 17 percent, following intervention from government to cushion the impact of spiraling fuel prices, Finance Minister Dr Ashni Singh announced yesterday.
The Government Information Agency (GINA) in a statement yesterday quoted Singh as saying that the reduction was in light of the developments in recent days, which saw crude oil being traded at around US$126 per barrel, while the most recent shipment of diesel imported here was purchased at US$150.85 per barrel.
Over the last year, the acquisition cost for diesel and gasoline has been steadily increasing. In January last year, gasoline was imported at US$58.53 a barrel and this year the cost soared to US$109.55 per barrel.
According to GINA, there has been a progressive reduction of the fuel excise tax from 50 percent on gasoline at the start of 2007 to 17 percent and now 7%.
