PRESIDENT Bharrat Jagdeo’s promise to the public transportation sector to monitor the rising cost of fuel and to intervene appropriately if necessary has been kept as the Excise Tax on gasoline was on Monday reduced by 10 per cent, from 17 per cent to seven per cent.

This was a further reduction of the tax which was earlier reduced from 50 percent to 17 percent.

Minister of Tourism, Industry and Commerce, Manniram Prashad, recalled that during a meeting President Jagdeo held with the public transportation association two weeks ago, the President had promised to intervene if necessary.

The price per gallon of gasoline remains below the $1,000 mark. An agreement was made between Mr. Jagdeo and the associations that they would not increase fares unless the price for gasoline reached $1,000 per gallon, at which time he would intervene.

Minister Prashad said that members of the public transportation associations have expressed their gratitude over the reduction of the tax.

“I got some calls from members of the association who were very happy at this reduction because it means that we have made a commitment and we are holding to that. I am also happy that the established minibus associations did not increase their price for minibus fares,” he said.

There have been reported cases of two minibus routes that have increased their fares, and the Ministry is trying to work with the operators to desist from this action because like everyone else, they are benefitting from the tax reduction.

Suggestions have been made by various associations to put measures in place so that those routes that have increased their fares do not benefit from the reduced tariff. Members also suggested that government bring in big buses to work on these routes.

However, Minister Prashad said that this has not been done because President Jagdeo had indicated that for the time being he would not engage in any activities related to bringing big buses for public transportation although it was discussed at several levels.

The Minster noted that the cooperation from the public transportation associations has been very forthcoming since they have also kept to the agreement made with President Jagdeo.

“I am pleased at the response that the minibus associations have given me… and as a matter of good faith we have kept our end of the bargain so we are keeping the price of gasoline down through several interventions - and this recent one by bringing it down from 17 percent to seven percent,” Minister Prashad said.

The Minister said the losses that the government and treasury will experience in revenue because of the reduction of the excise tax, “is a price we have to pay in the interest of the working class and in the interest of the consumers; the government is prepared to go the extra mile to ensure that the price of fuel does not go up.”

Government also reduced the excise tax on diesel recently from 25 percent to zero percent.