…in bid to keep gas prices, bus fares stable
PRESIDENT Bharrat Jagdeo yesterday announced a further 10 percent cut on the Excise Tax on fuel aimed at ensuring that bus fares are not increased.
Minibus operators have been agitating for increased fares since fuel prices began spiralling as a result of the civil war in Libya and instability in other neighbouring major fuel exporters. This announcement was made when President Jagdeo met minibus operators at State House. He informed them that the further reduction on the already softened Excise Tax on fuel is intended to cushion the effects of the high world market oil prices and keep bus fares stable.
The meeting saw the presence of minibus owners and operators, represented by various minibus associations. Minister of Transport and Hydraulics Robeson Benn and Minister of Tourism, Industry and Commerce Manniram Prashad were also at the meeting.
Some of the associations have been vibrant in their calls for there to be a strike, insisting that the high gas and spare parts prices left them no choice but to ask for the increase. Some operators made no bones about hiding their displeasure about the government’s move to put into operation big buses, which transport passengers free of cost.
Speaking to members of the media after the meeting, Minister of Transport and Hydraulics, Robeson Benn reiterated that there will be no increase in fares, until the price of gasoline tops $1,000 per gallon at the State-owned Guyoil.
“There are some people still offside on the issue, but we are holding to the benchmark price with respect to fuel at Guyoil,” said Benn.
“We are looking at issues with respect to the operations of the buses, trying to enhance better self-regulation. There isn’t agreement on this. Of course some operators want to have increases but it is not settled,” he said.
“We will continue with our operation to have buses at the park as long as persons are being forced to pay higher fares,” Benn said, when asked whether the initiative to transport commuters with large buses will continue.
As to the outcome of the meeting, Minister of Tourism, Industry and Commerce, Manniram Prashad said, “At the end of the meeting, the position is that those who had planned to strike would go back to work, there will be no increase in minibus fares, and commuters are asked not to pay any increase.”
Prashad noted that there is no written agreement as it relates to a structured fare but an understanding exists that the fares would not increase unless the price of gasoline goes beyond $1000 per gallon.
In this regard, he reiterated that the price for gasoline at Guyoil remains below the $1000 mark, and as such the agreement made with the General Minibus Association, the Guyana Public Transportation Association, and the Number 32 Minibus Association still stands.
Prashad reminded that the government had adjusted the excise tax on gasoline to ensure that the price does not exceed a $1000, and only recently, the administration took steps to reduce the excise tax on diesel from 20 to 15 percent.
As to the implications of the continued reductions, he said, “This is in keeping with the understanding that the government will do everything possible to make sure that the price of gas remains below $1,000.
Continuing, Prashad noted too that even though there were discussions of placing public transportation under the auspices of the Public Utilities Corporation (PUC), no decision has yet been made.
He explained, “This was discussed but no formal arrangement was arrived at, because most persons do not want that at this stage; but as far as a general increase is concerned, there is no increase.”
In the coming weeks, meetings will be held with representatives from several groups to address other concerns, Prashad added.
Meanwhile, many of the operators who attended the meeting at State House explained that they were somewhat satisfied with the outcome of the discussions.
President of the Guyana Public Transportation Association (ag), Mr. Vibert Bell, noted that he is pleased with President Jagdeo’s announcement of a further tax reduction on gas.
“It is good that the President is seeing with us with respect to the tax reduction and we will be using the Guyoil price for gas as a benchmark for our fares.”
Bell explained that at this time, with the gasoline price still below $1000, operators will be adhering to the old fare structure.
Mr. Oral Kelwin, the owner of a private minibus service, said that the striking operators will need to work along with the decisions taken at the meeting.
“The government recognises that there is a need for an increase, but we need to follow the agreement made, if the gas remains below $1,000 then there will be no increase,” he stated.