THE possibility of regulating the public transport system, as well as other areas currently benefiting from the falling fuel prices, may be the way to go in light of the fact that these sections seem disinclined to facilitate a ‘flow through’ of benefits to Guyanese consumers.

Head of the Presidential Secretariat, Dr. Roger Luncheon, said “The regulation of the sector seems much more promising than the Government being involved in the sector competing with private interests.”

Finance Minister, Dr. Ashni Singh last Tuesday announced significant reductions in local fuel prices as follows: gasoline was reduced from $995 per gallon to $695, representing a 30 per cent reduction; diesel was reduced by 30 per cent, from $985 to $694; and kerosene saw a reduction of 42 per cent from $850 to $496.
Since the announcement, public transport operators, although benefiting from reduced fuel prices, have not facilitated a reduction in the fares commuters pay.
Dr. Luncheon said, “In quite a few areas, operators and owners of public transport, they have indeed reduced fares… however in other areas, other categories of operators and owners have adamantly refused to countenance any change in their fare structure.”

ONE-WAY ENGAGEMENT

The fact that public transport operators justify an increase in fares when fuel prices go up was underscored by the Head of the Presidential Secretariat, and he noted that there seems to be a “one-way engagement” between fuel prices and fare structures.
“When fuel prices go up, there is a demand for increases in fare, but when fuel prices fall, it’s like pulling teeth to get fare increases to be rolled back,” he told reporters at his post-Cabinet media briefing on Wednesday.
Dr. Luncheon stated that the current Administration was hopeful about “leveraging” the changes in fuel prices to other non-regulated sectors in the private sector.
According to the HPS, apart from the public transport system, there has been a ‘flow through’ in other areas, notably a 13 per cent decrease in cooking gas and a drop in aviation fuel by the Guyana Oil Company Limited (GuyOil) at its Timehri station.
The Guyana Government’s much lauded decision last week to significantly reduce fuel prices on the local market, amid reduced fuel prices globally, has resulted in appreciable benefits to consumers.