PNCR calls for subsidies to further counter rising fuel prices

…wants Govt to compensate fuel suppliers to bring down costs

The excise tax on fuel has gone from 50 per cent in 2021 all the way down to zero today. According to the People’s National Congress Reform (PNCR), however, the Government should take the next step of subsidising fuel suppliers.

During Opposition Leader Aubrey Norton’s press conference on Tuesday, PNCR member Elson Lowe made the call for fuel subsidies on behalf of his party. While he noted that excise tax on fuel has already been slashed to zero, the party wants to see further steps taken.
“We are calling on the Government to bring the price of gasoline down now and insulate Guyanese from any further price increases. This can be done through a continuation of the existing excise tax policy. This means implementing a negative excise tax.”
“The Government should ensure gas prices do not increase above a determined level by compensating suppliers for any price increases where the excise tax reductions have already been exhausted,” Lowe also said.

According to Lowe, this will help bring down the price for a wide cross-section of goods and reduce the cost of living. He was of the view that as an oil producer, Guyana can afford to compensate suppliers.
Since taking office, the People’s Progressive Party/Civic (PPP/C) Government has taken a number of measures to bring down the cost of fuel. The excise tax on gas and diesel was lowered last year from 50 per cent to 35 per cent. It was subsequently lowered to 20 per cent.

In March of this year, when the excise tax was at 10 per cent, the Government further announced that it was being slashed to zero. Vice President Bharrat Jagdeo meanwhile said at a press conference last month that the Government has done all it can to lower the price of fuel.
“You know the excise was at fifty per cent and we reduced it to zero. That is what we have done and that is what we could have done. There isn’t anything else we can do at this stage because that is the only thing the Government uses to collect in terms of revenue and it is at zero, down from 50 per cent,” Jagdeo had said.

Fuel prices
Fuel prices around the world have spiked, as a consequence of global events such as the Russian invasion of Ukraine this year. When this publication made checks on Tuesday, it was to see that gas prices are currently approaching $300 per litre at most local stations.
At State-owned GuyOil, the price is currently at $269 per litre. Both Rubis and Shell (fuel save gasoline) are meanwhile selling gas at $279 per litre. This is a sharp contrast from back in March 2022, when GuyOil was selling gas at $203 per litre and both Rubis and Shell were selling gas at $204 per litre.
Major Private Sector bodies like the Georgetown Chamber of Commerce and Industry (GCCI) and the Private Sector Commission (PSC), had called for the removal of the excise tax altogether as a means of helping the population navigate these challenging times.
The prices of a wide range of commodities have significantly increased. Among them are fuel and flour, with the National Milling Company of Guyana Inc (NAMILCO) announcing a hike of 15 per cent on the price of flour earlier this year.
At the time the excise tax had been slashed to zero, there had been concerns about whether prices at the service stations would be slashed, and when. To this end, Natural Resources Minister Vickram Bharrat had implored businesses and operators to ensure this removal of the excise tax on fuel is passed on to the wider public.
“We do hope, and I’m sure the regulatory agencies – Guyana Energy Agency (GEA) and the Prime Minister’s Office, which energy falls directly under – that they would do some amount of checks and, if possible, enforcement to ensure that there is compliance and that people actually enjoy the benefit of the zero tax on fuel in Guyana.”
“So I want to personally make an appeal to all service station owners, whether international companies or our own – well, we know GuyOil will reduce their price – that we ensure that this benefit reach the consumers,” Bharrat further told Guyana Times.
Moreover, the Natural Resources Minister had also appealed to public transportation operators such as minibuses and taxis to ensure that they do not increase their fares.