The government has absorbed billions of dollars in fuel-related costs to cushion citizens from rising global oil prices, Senior Minister within the Office of the President with Responsibility for Finance Dr Ashni Singh has said.
Addressing recent increases in fuel prices, Minister Singh explained that Guyana, despite being a crude oil producer, still imports refined fuel products from the international market and is therefore affected by fluctuations in global oil prices.
“As a result of global developments, the world market price for oil has been increasing in recent weeks and months,” the minister stated.
He said the government, under the leadership of President Dr Mohamed Irfaan Ali, has implemented several measures to protect consumers from the full impact of those increases.
Among those measures was the complete removal of excise taxes on fuel, a policy the government has maintained to reduce pressure on consumers.
According to Minister Singh, the removal of the excise tax has resulted in savings of approximately $100 billion annually for Guyanese consumers.
“At a micro level, Guyanese consumers are saving about $500 per gallon of diesel or gasoline purchased at the petrol station,” he explained.
The minister added that the government has also absorbed higher fuel costs incurred by the Guyana Power and Light Incorporated (GPL) and the Guyana Water Incorporated (GWI), both of which rely heavily on fuel for their operations.
He said electricity tariffs have remained unchanged despite higher operational costs because the government intervened financially to prevent increases from being passed on to consumers.
“We have said we will not pass on those increases through electricity tariffs,” Minister Singh stated.
Minister Singh further noted that increases at the fuel pumps in Guyana have been significantly lower than the actual rise in global crude oil prices because of deliberate policy interventions by the government.
He said the administration remains committed to cushioning citizens from global economic shocks while maintaining stable utility costs.