Fuel prices soar again
Fuel prices have risen as a result of increased acquisition costs and government might have to step in once again to rein in the situation before it spirals out of control, executive member of the Guyana Petrol Station Dealers Association, Manzoor Nadir, has stated. Texaco and Esso have increased their fuel prices and Shell is expected to follow shortly. One company has raised the wholesale price for gasolene from $316 per gallon to $360. The retail price is now $390. The wholesale price for diesel was raised from $297 per gallon to $330. The retail price was increased to $360. Nadir said government needs to monitor acquisition costs, mark-ups and taxes for fuel to help ease the price strain on consumers. The association is trying to set up a meeting with Trade Minister, Geoffrey Da Silva, to discuss the recent turn of events. Da Silva said yesterday that he had had initial discussions with the heads of the oil companies operating here and there was to be a follow-up meeting shortly. The acquisition cost has gone up from US$33 per barrel to US$40, Nadir disclosed and this was having a ripple effect on the price consumers have to pay locally. He said it was not foreseen that the prices will go down in the near future and this will put some pressure on Guyana's economy. Dealers will have to use up more foreign exchange to purchase fuel, he stated. The government had lowered the consumption tax on fuel by ten percentage points earlier this year when the prices on the world market had increased, causing the same to be done locally. Since then, the Organisation of Petroleum Exporting Countries had increased output to ease the strain of rising oil prices but the effect is yet to trickle down to the countries which import fuel. A local industry source said the decrease in the United States fuel stockpile which was not yet replenished could also be a factor in the increase on the world market price.
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