VICE-PRESIDENT, Dr. Bharrat Jagdeo, on Wednesday, announced the removal of excise tax on gasoline and diesel, as the government moves to further cushion the impact of rising global fuel prices.

The Vice-President made this announcement during a community meeting at Paradise on the Essequibo Coast and the good news was greeted with a loud round of applause from the residents, most of whom are farmers. Farmers have also been “feeling the squeeze” as a result of rising fuel prices.

The high prices for fuel are due largely to the war between Russia and Ukraine. Russia is a major global supplier of oil and gas but is facing sanctions from the US, UK and the European Union following its invasion of Ukraine.

Those sanctions target the Russian economy and deter other nations from purchasing oil and gas from Russia. Sanctions have also created a shortfall and uncertainty which have driven up oil prices on the global market to more than US$100 per barrel.

The surge in prices for oil has resulted in a spike in prices for fertiliser, which is made from petroleum products. Though the Dr. Irfaan Ali-led government has removed VAT on agriculture inputs since assuming office some two years ago, these measures could not lower the prices for fuel as the spike is due to external factors.

However, of late, prices have dropped from US$139 per barrel in the first week of this month to US$117 as of Wednesday, as the UAE has agreed to calls to up production to satisfy shortfalls on the global market.

Farmers along the Essequibo Coast – primarily a rice growing region of Guyana – have been appealing to the government for support to cushion the impact of high prices for fuel which have been eating away at their profit margin; they welcomed the news on Wednesday with cheers and praises for the government.

Soon after the announcement by Dr. Jagdeo, Guyana Revenue Authority (GRA) Commissioner-General, Godfrey Statia, dispatched a release that captured the disclosure made by the Vice-President.

The 10 per cent excise tax on gasoline and diesel has been slashed to zero with immediate effect, the GRA said in a bulletin notifying all importers and licensed customhouse brokers of the decision made by the government.

The government, in Budget 2022, had reduced the excise tax on gasoline and diesel from 20 per cent to 10 per cent and the latest intervention, Dr. Jagdeo said, is geared at offering further relief to consumers.

President of the Guyana Oil and Gas Energy Chamber (GOGEC), Manniram Prashad, in a brief statement, welcomed and commended the move by the government.

“Russia’s invasion of Ukraine and international oil prices has resulted in a recent significant increase in oil prices. The government’s action to reduce the excise tax on gasoline and diesel to zero is most welcome by GOGEC. This action would help to cushion the impact of the rising cost of fuel at the pump and will benefit all Guyanese, especially the poor and vulnerable,” Mr Prashad said.

He also urged the relevant agencies to ensure that this reduction is passed on to the public. The government is expected to now move swiftly to ensure the removal of excise tax on gasoline and diesel is implemented by pump stations throughout the country.

This latest intervention, Dr. Jagdeo told residents at several community meetings across Region Two, is just one in a series of measures implemented by the government within a relatively short space of time to bring relief to citizens reeling from the pandemic and poor economic policies of the former APNU+AFC Government.

The others include the restoration of the education cash grant which was scrapped by the former coalition administration. Aside from restoring the grant, Dr. Jagdeo reiterated that his government has increased it to $25,000 and will further increase it to $50,000 before the end of their first term.

Some $250,000 has been given to sugar workers who lost their jobs when the APNU+AFC Government closed the sugar estates; old age pension has increased by 40 per cent; the sum for school uniform vouchers has been progressively increasing; and the scores of burdensome taxes implemented by the former government have been removed. Recently, the Vice-President also announced that some 800 temporary jobs will be made available to residents of Region Two.