Finance Minister Winston Jordan yesterday announced that fuel prices at the state-owned Guyana Oil Company (GuyOil) will be slashed from the start of next week.
The government had not moved to lower the excise tax on fuel even though global prices for oil have been around US$30 per barrel and under, prompting the Private Sector Commission (PSC) to call on Monday for a review of fuel prices at GuyOil and a reduction of electricity rates to benefit consumers.
During his presentation on the 2016 budget yesterday, Jordan announced that effective from February 1, 2016, gasoline would be reduced from $190 per litre to $170, while dieseline would be reduced from $161 to $150, and kerosene from $120 to $90, at GuyOil.
Jordan also announced an increase in rebate granted by the Guyana Power and Light Incorporated (GPL) to stimulate the manufacturing sector and aid households.
“Mr. Speaker, conscious of the need to provide incentives to the manufacturing sector, in order for it to become competitive, and, as a further measure to boost incomes of households, it is proposed to increase the rebate granted by the Guyana Power and Light Company from 10% to 15%, with effect from April 1, 2016,” he added.
In a statement on Monday, the PSC had said 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. It further warned that if the trend continued, imports will be cheaper on the local markets and certain local production will decrease whilst exports will be more expensive. It noted 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. It add that lowering the cost of fuel and electricity would provide a much needed stimulus to the recovery of the sluggish economy.
