The Private Sector Commission (PSC) says it remains concerned that fuel prices in Guyana do not reflect the global trends where prices are low, and fears that the competitiveness of local manufacturers, farmers and service providers will be lost if urgent action is not taken.
In a statement today, the PSC said that if these trends continue, imports will be cheaper on the local markets and certain local production will decrease whilst exports will be more expensive. It said that with record lows in oil prices being translated into low prices at the pump in most countries, Guyanese consumers and manufacturers are still paying almost US$4.50 per gallon which is nearly double the prices in some developed economies.
“The Private Sector Commission calls upon government to review the prices of fuel, in particular at the state owned Guyana Oil Company, and consider a reduction in electricity rates so that the benefit of the lower oil prices can provide relief to consumers who are suffering from reduced disposable income.
“At this time when the economy is still reeling from the effects of the elections-induced slowdown in 2015, lowering the cost of fuel and electricity would provide a much needed stimulus to the recovery of the sluggish economy”, the statement said.
The PSC call comes just days before the 2016 budget which may address this issue. The government has not moved to lower the excise tax on fuel even though global prices for oil have been around US$30 per barrel and under.
