Senior Minister in the Office of the President with responsibility for finance, Dr Ashni Singh, last night announced a reduction in the excise tax on gasoline and diesel to relieve the impact of the recent sharp increase in the world market price for fuel.
The minister noted that over the past several months, it was observed that oil prices have risen steadily on the world market and have since gone from US$35 a barrel in late October of last year to more than US$60 a barrel by close of trade yesterday. The prices on the local market are very much influenced by these increases.
The government therefore announced the reduction of excise tax on fuel with immediate effect in order to minimise the impact on domestic consumers, in particular those who are constantly travelling and the productive sectors for which fuel is a necessity.
The excise tax on fuel has now been reduced from 50% to 35% which will result in gasoline prices going from $184 down to $170 per litre and diesel prices are expected to go from $170 to $160 per litre.
Singh noted that in the previous term of the PPP/C administration, arrangements were made to have the excise tax on fuel adjusted from time to time to cushion the domestic impact. The minister further emphasised that in keeping with the government’s commitment to its citizens, domestic customers can expect protection as it relates to price escalation on the world market and will not have to worry about world market increases adversely affecting the cost of living.
