Drivers are expected to get an ease at the pump with the Government announcing a reduction in the excise tax on gasolene and diesel with immediate effect.
Senior Minister responsible for Finance, Dr. Ashni Singh announced on Wednesday night that the excise tax rate on both gasoline and diesel has been reduced from 50% to 35% with immediate effect.
The reduction in the taxes should see an almost immediate reduction in the price for gasolene and diesel.
According to the Finance Ministry, gasoline prices are expected to to be reduced from $184 per litre to $170 per litre, and diesel prices from $170 per litre to $160 per litre.
The move to reduce the taxes was triggered by the increase in oil prices on the world market. Oil prices increased from $35 per barrel in October to the current level of $60 per barrel.
Minister Singh said the adjustment in the taxes is in keeping with the government’s commitment to ensure that domestic customers are protected from sharp price escalation on the world market.