Gas prices likely to drop
GAS prices are likely to drop with the decision by the government to further reduce the consumption tax on gasolene and dieselene. The Finance Ministry last night announced that with effect from yesterday, the government has reduced the consumption tax on the fuels to 35 per cent. It said this reduced tariff will apply as long as the price of each product exceeds US$35 a barrel. A spokesman for the petrol dealers association said he expects prices of the products will drop within two days with the reduced tax. The ministry said the government expects petrol dealers will lower the domestic prices for these fuels following this further reduction in the tariff. Gasolene prices are around $390 a gallon. The Finance Ministry noted that in March this year, the government "mindful of the adverse impact the steady increases in oil prices could have on the economy and the population, reduced the consumption tax on fuel from 50 per cent to 40 per cent." "In doing so, it indicated that the reduction would remain in force as long as the price of oil remained above US$30 per barrel", it said. The ministry pointed out that the price of oil has risen steeply since then.
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