Fuel prices to be reduced when current inventory is depleted – Sol

Hours after the Government lowered excise taxes on fuel, Sol Guyana has assured its customers that the prices at the pump for its gasoline and diesel products would be reduced in accordance with the Government’s recent announcement of a cut in excise taxes on fuel.
This reduction in excise tax will be applied to all fuels which were imported by Sol subsequent to the announcement by the Minister of Finance.
However, the company stated, in the short-term, prices at the pump for gasoline and diesel, which were imported prior to the announcement, will be based on the previous excise tax which that inventory had attracted.
“While the recently announced excise tax reduction took effect immediately, the lowered tax does not have an impact on product that was already purchased at the higher excise rate, and which is currently in storage by Sol,” Sol stated in a release.
General Manager of Sol Guyana, Earl Carribon, reiterated that Sol is committed to its customers, and it welcomes the Government’s policies that have been designed to reduce the cost of fuel to consumers.
“We look forward to passing on any savings from the Government’s reduction in excise taxes to our customers once the current inventory has been depleted”.
The release stated that “The views expressed in this release or statement are made by Sol, and are not made on behalf of, nor do they necessarily reflect the views of, any company of the Shell Group of Companies.”
On Wednesday, Finance Minister Dr Ashni Singh announced that Government would 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.
“The prices at the pump are expected to also be reduced with immediate effect, with gasoline prices expected to reduce from $213 per litre to $198 per litre, and diesel prices from $200 per litre to $185 per litre,” the Ministry stated in a release.
Back in February of this year, the Government had reduced the excise tax rate on both gasoline and diesel from 50 percent to 35 percent. Since that 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 on the domestic market, with prices rising therein also.
Minister Singh has 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 would implement to cushion the domestic impact of world market price fluctuation.