The state owned Guyana Oil Company (GuyOil) was expected to implement a 30 per cent reduction in fuel prices as of yesterday evening to reflect the dropping world market price of crude oil.
Minister of Finance Dr Ashni Singh said that by tomorrow, all GuyOil-branded petrol dealers will have implemented the new pricing scheme for gasoline, diesel and kerosene.
Singh said gasoline will be retailed for $695 per gallon, diesel will be retailed for $694 per gallon and kerosene, $496 per gallon compared to $995, $985 and $850 respectively. The government utilized a fluctuating excise tax rate to ensure that fuel prices remain stable locally.
He made the remarks at a press briefing held at the National Communications Network (NCN) yesterday.
Tackling the issue of fuel stock and reserves the finance minister noted that he could not make guarantees in relation to GuyOil’s abilities to fulfil demand. “It would be irresponsible of me to stand here and say to you that after GuyOil reduced they will not get a rush and they will not run out of fuel I am not in a position to give that assurance,” Singh stated.
He said he hoped other retailers would follow suit and lower fuel prices as he does anticipate that GuyOil will receive an influx of traffic once the price adjustments have been made across the board. He noted that the savings could also be passed on through public transportation; however the government does not control the ability to set public transport pricing.
Singh said it may take a while but the sustained drop in the price of oil price globally made a reduction in local fuel prices acceptable and he hoped the price differential between GuyOil and other private businesses was not too much.
According to the finance minister the adjustable excise tax will be at a rate of 50 per cent for gasoline and 45 per cent for diesel. Singh stated that the reduction is the lowest seen since 2009.
The minister did not address speculation that the government might be utilising the reduction in fuel prices as an election mechanism to garner votes.
