President Bharrat Jagdeo yesterday announced that the excise tax on gasoline would be cut to 15%, prompting minibus operators to agree to revert to resume operations with lower fares.
The announcement was made during a meeting held at State House between the Head of State, Minister of Industry and Commerce Manniram Prashad, Minister of Transport Robeson Benn and a dozen bus operators representing different zones.
The excise tax on gas was already recently reduced from 30% to 20% last month, to cushion the impact of the increase in oil prices on domestic goods and services.
The closed door meeting was set up after minibus operators of different routes staged a major strike yesterday. Buses were seen gathered at the Square of the Revolution and also at Providence, East Bank Demerara, while some commuters were left stranded.
Throughout the day, a small number of minibuses remained at work, transporting passengers at the old fares. However, at around 5:30pm, no buses were in sight when Stabroek News visited the Route 42 (Georgetown – Timehri) bus park. While a large group of commuters were stranded, they were later rescued by big buses deployed by the government as a free service to the public to contain the rise in fares.
The State House meeting allowed striking operators to voice their concerns, and afterward they agreed to return to their old fares.
Meanwhile, the Government Information Agency (GINA) last evening quoted Finance Minister Dr. Ashni Singh as saying that in addition to the cut of the excise tax charged on gasoline, the excise tax charged on diesel would decrease from 15% to 10%.
Minister Singh, GINA said, explained that this decision was taken in light of the upward movement in the imported cost of refined fuel products.
The acquisition price on the last shipment of refined gasoline was US$135.60 per barrel, which is an increase of 24.7% above the price of US$108.72 per barrel at the beginning of this year. Similarly, the acquisition price of refined diesel of US$137.73 per barrel is 24.4% higher that the acquisition price of US$110.74 per barrel at the beginning of 2011.
“The reduction of the excise tax rates on gasoline and diesel would therefore counter higher increases in the cost of production of goods and services and hence lower prices to the consumers,” GINA noted. It added that 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.
