NOTWITHSTANDING the reduction of the excise tax last month, Guyana is still finding it hard to withstand continual increases in oil prices on the world market.
This has resulted in prices at the pump increasing to over $180 per litre this week.
Last month, gasoline prices at GuyOil stations across the country were reduced from $184 per litre to $170 per litre, and diesel prices from $170 per litre to $160 per litre, following the February 17 announcement by Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, that government had lowered the excise tax rate on both gasoline and diesel from 50 per cent to 35 per cent with immediate effect.
This followed global oil prices having seen a rapid rise since last year September to October.
Though the excise tax remains at 35 percent, prices for gasoline across various gas stations averaged $189 per litre, as world prices continue to increase.
As is customary, GuyOil carries the lowest price, and as at Friday, its Super 95 was retailing at $188 per litre. At one Shell Gas Station, its signature fuel -save gasoline was being sold for $189 per litre, while at one Rubis outlet gasoline was being sold at $190 per litre.
Consumers said they are “feeling the squeeze.”
“Every day now I’m buying like $5000, $6000 in gas,” 60-year-old taxi driver Winston Khan lamented, as he made a stop at a GuyOil outlet to replenish his tank.
Khan said he had bought $3000 in gas earlier in the day, but that proved to insufficient for him to continue working throughout the day. Khan, who is from the East Coast, said he operates mainly around Georgetown.
“I buying $2500 now and I bought $3000 earlier,” he noted.
Fellow taxi driver, 53-year-old Lloyd Squires, said he shells out approximately $40,000 per week in gasoline for his business.
“The fuel is going up, but you can’t raise the taxi fare, because people will “buse” you, it’s like you just working to full your tank,” he said.
At a Rubis outlet, 52-year-old Margni Siwel, who travels from the Soesdyke highway to the city daily for work, said every dollar counts for him.
“Every dollar matters, and as much as it’s just a difference in few dollars it’s an accumulated amount. When it went down really nice $5000 used to full my tank,” Siwel said.
Increases in gas prices this year came following massive global decreases in 2020, which were brought on by the COVID-19 pandemic. In Guyana, following the arrival of the COVID-19 pandemic in March, 2020, prices at GuyOil stations saw a massive reduction from $201 per litre to $130 per litre from April, 2020.
As the prices increased, another decrease from $165 to $155 per litre was made in September, 2020.
On the world market, oil prices had risen from US$35 a barrel in late October, 2020, to over US$60 a barrel by mid-February. According to the US Energy Information Administration (EIA), higher crude oil prices are expected in March through to April
Manager of the Shell Vlissengen Road outlet, Robin Lowe, said the outlets are simply working with their obligations to the parent company.
“Us dealers, all we do is just adjust the prices accordingly. If it goes up we have to send it up, if it goes down we have to take it down. We’re not in control of the pricing. We’re advised by SOL when the prices increase; in fact, we are mandated to increase by contract. It’s a derivative of the acquisition cost. When the world prices go up and then the acquisition costs go up, that’s passed on to the dealers,” Lowe noted.
