Guyana to cut 50% excise tax on both petrol, diesel

Guyana: Dr Ashni Singh, Minister of Finance has announced that the government would cut excise tax on petrol and diesel to alleviate the local impact of the recent sharp rise in the world market price of fuels. In announcing the reduction in excise duty, Minister Singh noted that oil prices have been rising steadily on the world market over the past few months, from US$35 per barrel at the end of October 2020 to more than US$60 per barrel today. As a result of this steady rise in the world market, fuel prices have also risen in the domestic markets.

Minister Singh announced that the government would reduce the excise tax rate on both petrol and diesel by 50% to reduce the impact on local consumers, especially the traveling public as well as the productive sector for which fuel is an important contribution up to 35 percent with immediate effect.

Due to the reduction in the excise tax, the price at the pump will also be reduced with immediate effect. Specifically, gasoline prices are expected to fall from $184 per liter to $170 per liter, and diesel prices from $170 per liter to $160 per liter.

Minister Singh explained that during its previous term in office, the PPP/C government had made arrangements to adjust the excise duty rate on fuel from time to time to mitigate the local impact of the world market price fluctuation, and that the current tax adjustment is taking place using this previously established mechanism.

Minister Singh stressed that the adjustments tonight are in line with the strong ongoing commitment of President Irfaan Ali's government to ensure that domestic customers are protected from sharp price increases in the world market and from the cost of living.