Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, tonight announced that Government will be further reducing the excise tax on gasoline and diesel to ease the domestic impact of the continuous rise in the world market price for fuel.
A release from the Ministry of Finance noted that on February 17 of this year, the Government reduced the Excise Tax rate on both gasoline and diesel from 50 percent to 35 percent.
“Since this time, oil prices have continued to rise steadily on the world market, moving from over US$60 a barrel to over US$80 a barrel at close of trade on October 5, 2021. This steady rise in the world price has had a resultant effect with prices rising on the domestic market also”, the release said.
Singh announced today that the Government will be lowering the excise tax rate on both gasoline and diesel from 35 percent to 20 percent with immediate effect.
“This reduction will aid in cushioning the impact on domestic consumers, particularly the travelling public as well as those productive sectors for whom fuel is an important input”, the release added.
The prices at the pump are expected to also be reduced with immediate effect, with gasoline prices expected to drop from $213 per litre to $198 per litre, and diesel prices from $200 per litre to $185 per litre.
Singh said that the adjustment in the excise tax rate on fuel from time to time is part of the measures that the PPP/C Government will implement to cushion the domestic impact of world market price fluctuation.