Trade union, business chamber commend gov’t on further reducing fuel prices

The government’s move to further reduce the prices for fuel has been commended by at least one trade union body – The Federation of Independent Trade Unions of Guyana (FITUG) – and a business chamber with a key focus on oil and gas – Guyana Oil and Gas Energy Chamber (GOGEG).

On Saturday, the government announced the reduction in fuel prices by 20% for gasoline and 15% for diesel in a bid to bring further relief to consumers across the country.

Soon after, President of GOGEG Manniram Prashad, commended the government and the hands-on-approach to dealing with this issue by President Irfaan Ali.

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% to 0% 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,” a statement noted.

“Notwithstanding, these are bold and commendable measures implemented by the government in an effort to bring further relief to consumers in the short term,” it added.

GOGEC said it is also confident that these 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.

Meanwhile, FITUG said it was heartened to learn of the decision regarding the reduction in fuel prices,

The announcement which came over the weekend was greeted by many workers who expressed elation at the decision.

FITUG acknowledged that the escalation of fuel prices over the last few months was primarily influenced by external events and noted too the efforts of the Administration to reduce taxes on fuel.

“This is noteworthy and is an undoubted demonstration to the ordinary people. The Federation, at this time, anticipates that other fuel providers will follow suit and provide similar reductions to their customers. Similarly, we also expect that savings accruing to businesses, public transport operators and others will also be passed on to ordinary Guyanese. Our workers and their families are in need of such respite,” the FITUG statement noted.

The Federation notes other measures to address the cost-of-living in Guyana. The collective policies are aimed clearly at providing a cushion for the Guyanese people at this time of global upheaval and uncertainty.