The administration may consider reducing the excise tax for gas in the light of the rising oil prices.
Cabinet Secretary Dr Roger Luncheon, in response to a question, said yesterday at his weekly press briefing that the rise and fall of gas prices have historically elicited a predictable response by the administration.
He said the administration will not abandon “the time tested resort that has been put in place over the years.”
At the local service stations, the price of gas has risen to almost $1,000 per gallon, an increase which has seen minibus operators on the East Coast Demerara (ECD) demanding an increase in bus fares.
The administration recently announced the reduction of the excise tax on diesel to 15%, which represented a 5% drop on the tax.
Minister of Finance Dr Ashni Singh announced late last month that the government had recently reduced the excise tax as a result of the upward movement in the world market price for oil and in particular as a result of increases observed in the price at which diesel is being obtained from external suppliers.
According to a press release, the finance minister said the decision was taken at a time when external conditions, including developments in the Middle East had driven the price for crude oil up to US$100 per barrel, compared with less than US$80 per barrel just five months ago.
