Gov’t reduces excise tax on gasoline
–  Finance Minister says reduction aimed at cushioning domestic impact of world market price increase
MINISTER of Finance Dr. Ashni Singh yesterday announced a further reduction in the excise tax rate on gasoline following previous cuts made last year.
Minister Singh stated that, with effect from yesterday, the excise tax charged on gasoline would decrease from 15 percent to 10 percent. He explained that this decision was taken in light of the upward movement in the imported cost of gasoline. The acquisition price on the last shipment of gasoline bought by GuyOil was US$142.85 per barrel which is an increase of 19.7 percent above the acquisition price of US$119.32 per barrel at the end of last year.
The reduction of the excise tax rate on gasoline would therefore allow GuyOil to continue to retail gasoline at $980 per gallon resulting in no increase in public transportation fares to commuters.
The standard excise tax rate on gasoline and diesel is 50 percent. There is no excise tax on kerosene.
The Government would continue to closely monitor the acquisition cost of refined fuel products and would make the appropriate interventions by adjusting the excise tax rates in order to minimise any adverse consequence on the economy from higher fuel prices on the world market.