Govt has absorbed billions to protect Guyanese from rising transportation costs – Edghill

Over the past several years, the Government of Guyana has taken deliberate and significant measures to cushion the impact of rising global costs—particularly those affecting transportation. This has been done in recognition of our responsibility to protect both service operators and the ordinary citizens who rely on these services every day.

Many will ask, how exactly this was done and here’s the breakdown.

– 𝑹𝒆𝒅𝒖𝒄𝒆𝒅 𝒇𝒖𝒆𝒍 𝒆𝒙𝒄𝒊𝒔𝒆 𝒕𝒂𝒙 𝒇𝒓𝒐𝒎 50% 𝒕𝒐 0%

When this administration assumed office, the excise tax on fuel stood at 50 per cent. Recognising the severe impact that volatile global fuel prices would have on households, businesses, and transport operators, the Government progressively reduced this tax until it reached zero per cent in March 2022, where it has remained ever since. This was a direct intervention to lower fuel costs nationwide.

-𝑨𝒃𝒔𝒐𝒓𝒃𝒆𝒅 𝒃𝒊𝒍𝒍𝒊𝒐𝒏𝒔 𝒊𝒏 𝒍𝒐𝒔𝒕 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 𝒕𝒐 𝒑𝒓𝒐𝒕𝒆𝒄𝒕 𝑮𝒖𝒚𝒂𝒏𝒆𝒔𝒆 𝒄𝒐𝒏𝒔𝒖𝒎𝒆𝒓𝒔

Maintaining a zero per cent excise tax has come at a tremendous cost to the State. The Government has foregone billions of dollars in annual revenue rather than allowing the full impact of international fuel price hikes to be passed directly onto the people of Guyana.

-𝑨𝒅𝒋𝒖𝒔𝒕𝒆𝒅 𝒇𝒓𝒆𝒊𝒈𝒉𝒕 𝒄𝒉𝒂𝒓𝒈𝒆𝒔 𝒕𝒐 𝒑𝒓𝒆-𝒑𝒂𝒏𝒅𝒆𝒎𝒊𝒄 𝒍𝒆𝒗𝒆𝒍𝒔 𝒇𝒐𝒓 𝒕𝒂𝒙 𝒄𝒂𝒍𝒄𝒖𝒍𝒂𝒕𝒊𝒐𝒏𝒔

The Government intervened to alleviate the burden of elevated global shipping costs by adjusting freight charges to pre-pandemic levels when calculating import taxes. This measures helped ease financial pressure on the cost of imported, transportation-related commodities such as tyres, batteries, lubricants, spare parts, and other essential vehicle components.

-𝑰𝒎𝒑𝒍𝒆𝒎𝒆𝒏𝒕𝒆𝒅 𝒃𝒓𝒐𝒂𝒅𝒆𝒓 𝒄𝒐𝒔𝒕-𝒐𝒇-𝒍𝒊𝒗𝒊𝒏𝒈 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒔 𝒕𝒐 𝒓𝒆𝒅𝒖𝒄𝒆 𝒆𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆 𝒐𝒏 𝒉𝒐𝒖𝒔𝒆𝒉𝒐𝒍𝒅𝒔

The Government has consistently taken action to mitigate inflationary pressures across the economy. We understand that transportation costs do not exist in isolation, and that affordability for commuters must be viewed within the wider context of household expenses and national economic stability.

These interventions have come at an enormous fiscal cost. However, the Government understands that it has a fundamental duty to intervene when global pressures threaten the well-being of the Guyanese people. A conscious decision was made to absorb these significant financial burdens rather than pass those pressures directly onto our citizens.

It is, therefore, deeply concerning to witness recent attempts by minibus operators to justify unauthorised fare increases on the grounds of rising operational costs, whilst completely overlooking the extensive measures the Government has already implemented to alleviate those very pressures.

Public transport operators, in particular, have directly benefited from these initiatives, just as the wider business community has. Consequently, the question remains: why should the people who depend on public transport the most now be forced to bear the immediate burden of higher fares?

The market vendor trying to earn an honest living, the parent stretching every dollar to provide for their family, the pensioner travelling to a medical appointment, and the security officer heading home after a long shift are the individuals who will feel this impact first, and feel it hardest. Public transport cannot become an environment where ordinary citizens are placed at a distinct disadvantage simply because they have no alternative.

The Government remains open to constructive dialogue where legitimate concerns exist, but fairness must extend to everyone involved—especially the consumers whose livelihoods depend on affordable public transport. Any review of fares must occur through the proper institutional channels, guided by due process and thorough consultation, rather than through unilateral decisions that immediately deplete the pockets of ordinary Guyanese.