MP urges Govt not to profiteer from high fuel prices

…reduce tax haul to reduce prices

Given the recent hike in fuel prices, Opposition Member of Parliament (MP) Irfaan Ali has urged the coalition Government to give some serious consideration to reducing the high prices of fuel on the market.

Ali told Guyana Times on Tuesday that he has noted the significant increases in fuel prices at the fuel stations, especially at all State-owned Guyana Oil Company (Guyoil) service stations.
“The price for gasoline has leaped from $200 per litre, less than a month ago, to $230 per litre. Diesel is now being retailed at Guyoil for $214 per litre while kerosene is $145 per litre,” he explained.
Meanwhile, the former Minister said at some private gas stations, the price for gasoline is now $247 while diesel is a whopping $233. According to him, at Rubis, gasoline is $236 while diesel is $226.
Ali recalled when his party, the People’s Progressive Party (PPP) was in Government, they had constantly adjusted the tax regime to cushion the effect of fluctuation in fuel prices on the international market.
He said this was aimed at ensuring that all Guyanese were protected from increases in their expenditure. “However, it seems that the current A Partnership for National Unity/Alliance For Change (APNU/AFC) regime is deaf to the cries of the population and are bent of driving Guyana’s economy to the ground.”
The former Minister argued that it is well established that any increases in the price for fuel, gasoline or diesel, would translate in increases in costs of production for manufacturers, increase in expenditure for transportation operators and drivers. Ultimately, this will impact the local economic situation.
He pointed out too that these increases are passed on to the consumers who are already burdened with increases in more than 200 license fees and taxes that the coalition Government introduced.
Ali therefore called on the APNU/AFC Government to take immediate steps to reduce the cost of gasoline, diesel and kerosene so that Guyanese would not have to bear the brunt of the price increases.
“We urge the Government to utilise the formula, which the PPP Administration had used to reduce the taxes in order to protect consumers across the country from high fuel prices,” he added.
While persons have shared their displeasure with the increased prices, many public transport drivers have expressed that it will affect them if it continues to escalate.
Several minibus drivers on Saturday told Guyana Times that the increase in fuel will ultimately lead to the increase in transportation costs. A route 40 minibus driver told this publication that commuters usually complain when fares increase but they have to understand that the cost of fuel has increased.
“The thing is that the prices always raising and it’s crazy because we’re still working for the same fare. Soon it will grow to a big amount with all of this increasing and what will happen then?” he questioned.
In September 2017, world market prices for fuel increased due to the hurricane conditions in the southern hemisphere, which resulted in Guyoil adjusting the prices in gasoline, diesel and kerosene to a higher cost.
Again, in February of this year, Guyoil adjusted its prices upwards. The average price of gasoline around the world is US$1.15 per liter.