The Ministry of Finance has said that the increase in the excise tax is due to the drop in the oil price on the world market
In a press release on Tuesday, the ministry said “Government has in place a long-standing and well functioning mechanism under which the ad valorem tax rate on fuel products is adjusted downwards when the world market price for fuel moves upwards, and vice versa; it adjusts upwards when the world market price for fuel moves downwards”.
“Today as international fuel prices have dipped, the excise tax has been adjusted accordingly.”
However, the ministry also said that the tax rates that are being applied continue to be highly concessional relative to the standard rate of 50 per cent as such the prices consumers pay at the pump for gasoline and diesel has remained stable in recent years. Further, the ministry said, “When the world market price for gasoline and diesel increases the Guyanese public can be assured that the excise taxes will once again be reduced.
In recent months, the price of oil has slumped from around US$100 per barrel to just under US$80 per barrel.
