Finance Minister Dr. Ashni Singh says government’s efforts to cushion the impact of rising oil prices are being undermined locally by some oil companies and petrol retailers who have been increasing their profit margins though the excise tax on petroleum products has been reduced.
It was at a recent meeting with oil companies that Singh expressed concern and called for their support in remedying the problem. He also stated that government is looking at a number of options that may be implemented to ensure that the global rise in fuel prices does not hurt the local market.
Singh told the Government Information Agency (GINA) that he would be very concerned to extend the benefit of a reduced excise tax rate on fuel imports to oil companies if those companies do not show an appropriate level of responsibility in ensuring that reasonable margins are incorporated into the prices they are charging.
Since the beginning of the year the fuel excise tax was reduced from 50 percent on gasoline to 17 percent and more recently 7 percent. Tax on diesel was also cut from 10 percent to zero percent at the beginning of last year. Kerosene oil is not being taxed.
Oil prices have been climbing rapidly on the world market within the last year.
