GOGEC, FITUG welcome Govt’s fuel price reductions

– call on other fuel providers to follow suit

The Guyana Government continues to receive praise for its unprompted move to slash fuel prices on gasoline and diesel at the Guyana Oil Company (GuyOil) – a move that is expected to force the privately-owned entities to follow suit.
In addition to major stakeholder organisations, citizens themselves have thanked the Government for its decision.
Through GuyOil, the Government on Saturday last announced that the price of gasoline was slashed by 20 per cent and diesel by 15 per cent. This means that gas has been reduced from $269 per litre to $215 per litre. Additionally, diesel prices were reduced from $265 per litre to $225 per litre.
As global fuel prices skyrocket, the Government had intervened several times to lower the prices at the local pumps. The last measure taken was the lowering of the Excise Tax rate on fuel to 0 in March of this year.
However, in light of the announcement, the Guyana Oil and Gas Energy Chamber (GOGEG) has commended the Government on this move, describing it as a hands-on and proactive approach.
GOGEC said it estimates this move will cost the Government between $5 and $10 billion in foregone annual revenues. Notwithstanding, the organisation said these are bold and commendable measures implemented by the Government in an effort to bring further relief to consumers in the short term.
In addition, the Federation of Independent Trade Unions of Guyana (FITUG) also lauded the move, saying it demonstrates the active attention the Government is giving to addressing the cost-of-living of Guyanese.
“The Federation of Independent Trade Unions of Guyana (FITUG) was heartened to learn of the decision regarding the reduction in fuel prices by the Guyana Oil Company Limited (GuyOil). The FITUG recognises that the escalation of fuel prices over the last few months was primarily influenced by external events of which we were unwitting victims. We recognised the efforts of the Administration to reduce taxes on fuel to zero in an effort to mitigate the impact of the sudden price rises. This policy, had it not been pursued, would have made the bad situation even worse,” a release from the Union stated.
Further, it stated that “we have observed a gradual reduction in oil prices and had anticipated that such reductions would have reached our shores. Undoubtedly, the announcement by Minister Dr Ashni Singh demonstrates the active attention the Government is giving to address the cost-of-living of Guyanese.”
In addition, the Federation stated that it anticipates that other fuel providers will follow suit and provide similar reductions to their customers.
Nevertheless, with the reduction in fuel prices, hire car drivers and minibus operators have welcomed the announcement by the Government and is hopeful that it can be reduced at all service stations.
“So far only this morning the fuel drop at GuyOil… it is good when it drops,” a Route 40 minibus driver related.
“Cost of living is still high, we gotta spend money just like everybody else, yuh use to service yuh bus fuh like $20,000 every time you gotta service, now is $35,000 a month and all these things, everything still high, the deduction is okay but it could be reduced further.”
“Is good fuh always save… everything could and can go back to normal slowly, but yuh gah tek everything in stages. I would commend anybody wuh drop de fuel price if you put into consideration the simple gas is important for nuff daily activities,” Jamal Simon, another minibus driver added.