GUYANA Oil and Gas Energy Chamber (GOGEG) President Manniram Prashad has commended the Government for the further reduction in fuel price, through the Guyana Oil Company (GuyOil), by 20 per cent for gasoline, and 15 per cent for diesel.

GOGEG, in a release, said that since the outset of the rising cost of living phenomenon followed by the global supply chain disruptions, the devastating economic impact of the COVID-19 pandemic and geopolitical tensions in other parts of the world, President, Dr. Mohamed Irfaan Ali has taken a hands-on and proactive approach in confronting challenges on the domestic economy.

“Cognisant of the fact that fuel is a major source of energy across all sectors and households, it’s an input cost for almost the production of all goods and services, the government, as part of its menu of cost-of-living measures to help cushion the impact, reduced the excise tax on fuel from 50 per cent to zero in less than two years.

“This reduction translated to approximately $20 billion in foregone annual revenues for the Government. With this additional measure, GOGEC estimates this will cost the government another $5 billion – $10 billion in foregone annual revenues,” the release said.

GOGEG said these bold and commendable measures implemented by the government will bring further relief to consumers in the short-term.

GOGEC is also confident that the measures will be sustainable through the medium term until the materialisation of a few major transformational development projects that will seek to safeguard Guyana and the region from external shocks, such as the regional energy and food security agenda.