Georgetown : Cabinet Secretary Dr. Roger Luncheon today said Cabinet was provided with an up to date account of the “flow through of the load acquisition costs” on prices that were becoming applicable in those other retail sectors other than GuyOil.
He said that cooking gas, for example, which is retailed by private operators and businesses has seen, ‘modest reductions’ since late last year. The average price of a 20- pound cylinder of cooking gas has moved from $4,000 in October 2014 to around $3,500 at present, he stated, some 13% less.
With regards to public transport, this has not been to Cabinet’s desire. It was noted that some have reduced fares and some have “adamantly refused” to countenance any reductions. The Cabinet Secretary said that it would seem that such sentiments betray this compulsion, “when fuel prices go up there is a demand for increase in fares, but when prices fall, “it is like pulling teeth” to get fare increases to be rolled back. He posed the question as to whether when oil prices rose again, if there would be calls for fares to be increased.
Electricity rates are set to be reduced following President Donald Ramotar’s call to the Guyana Power and Light to adjust their charges following the drop in international oil prices. The power company is “favourably disposed” to so doing following the Head of State’s request. This will be done soon, according the Dr Luncheon.
With regards to aviation fuel, records have shown very little change, with only aviation fuel prices being reduced at the state owned GuyOil depot at the Cheddi Jagan International Airport.
The Cabinet Secretary said that, “we are dealing with the benefits of a regulated sector and government’s “historical intervention” of cushioning the flow through of world prices on consumers in Guyana. Those unregulated sectors strengthen the call for them to become regulated. The government continues to deliberate on an option of extending the state into competing with such interests. There is no uniformity on that position currently”.
