Sol says gas price will drop when taxed stock is sold out

A few service stations across Guyana were quick to act when the government announced the recent reduction in the excise tax on diesel and gasoline from 10 percent to zero percent in an effort to cushion the effects of the global price hike.

However, Sol Guyana’s prices remained the same and will only be changed when the company’s current inventory has been sold out.

This was revealed by the General Manager of Sol Guyana, Earl Carribon on Monday during an interview with the News Room at the company’s Agricola, East Bank Demerara office.

“When reduction in the excise tax would have been announced and it would have been communicated that it was effective immediately, we already would have imported some product which will have attracted excise tax of 10 percent.

“There is a process involved before the price is reduced; you need to deplete that inventory first, you need to sell inventory first that will have attracted that 10 percent before we then move into the new product layer which will be attracting zero percent,” Carribon explained.

Carribon told the News Room that he could not put a timeline to when the public can expect the change since it is dependent on the demand and how fast the stock is sold.

“However, Sol remains committed to our customers and as was the case previously, we welcome the government’s policies which have been designed to reduce the cost of fuel to consumers in these volatile times.

“Sol looks forward to passing on the savings from the government’s reduction in excise tax to our loyal customers once we have entered the inventory that will now attract the zero percent excise tax,” the General Manager emphasised.

Citizens felt the impact as the local service stations increased their fuel prices to as much as $249 per litre of gas or diesel.

In response, the government announced the tax reduction and an advisory from the Guyana Revenue Authority (GRA) read that, “As such, with immediate effect, all fuel imported will be subject to these revised rates as administered by the Customs, Excise & Trade Operations (CE&TO), GRA.”

The Sol Group of companies operates in 22 countries across the Eastern Caribbean, including Jamaica, Puerto Rico, Dominican Republic, Bermuda, Bahamas, Cayman, Belize, Guyana, Suriname, French Guiana, Martinique and Guadeloupe.

They have nine service stations operating across Guyana.