Motorists are expected to get some ease at the pump from this morning as the Government has announced a further reduction in the excise tax on gasoline and diesel to ease the domestic impact of the continuous rise in the world market price for fuel.
Finance Minister Dr. Ashni Singh announced last evening that the excise tax rate on both gasoline and diesel will be reduced from 35% to 20% percent with immediate effect.
The reduction will aid in cushioning the impact of the rising fuel prices globally.
With the reduction in the excise tax, the price for gasoline is expected to be reduced from $213 per litre to $198 per litre, and the price for diesel from $200 per litre to $185 per litre.
Earlier this year, the excise tax was reduced from 50% to 35%.
In the past few months, oil prices have continued to rise steadily on the world market, moving from US$60 a barrel to over US$80 a barrel.
The senior Minister responsible for Finance said the adjustment in the excise tax rate on fuel from time to time is part of the measures that the Government will implement to cushion the domestic impact of world market price fluctuations.