Diesel, kerosene prices reduced on local market

Sep 20, 2008 News

…gasoline price remains the same

The prices for diesel and kerosene oil have been reduced on the local market. Yesterday, the price for kerosene oil dropped by almost $6, whilst the price for diesel fell by $5.

These reductions have been felt countrywide, as fuel outlets across the three counties reported that the commodities have recorded slight decreases. However, the price of gasoline remains the same.

On the world market, oil prices have fallen further amid concerns that a slowdown in the global economy will affect demand.

Oil prices fell by $5 a barrel on Monday as global stock markets sank and news emerged that US refineries had not been damaged as expected by Hurricane Ike. The oil price has fallen from highs of above $147 a barrel in July.

Speaking with Kaieteur News yesterday, a private chartered account said that, given the reduction of the commodity on the world market, one would have expected to feel the trickle effects in Guyana.

In Guyana, Government reduces the consumption tax on fuel whenever the price rises, and increases that tax when the price of oil reduces. This is done to keep stability on the local market.

Yesterday afternoon, oil prices shot up by more than $6 a barrel, breaking back into $100 territory, as a sweeping government plan to rescue the imperilled U.S. financial system emboldened investors to re-enter the markets.

A BBC report late yesterday afternoon stated that crude had climbed over $13 in the past three days as the government carried out a historic intervention into the financial system.

According to the report, analysts yesterday said that prices could resume their downward trend. The analysts noted that demand for energy will likely remain weak, as a slumping economy leads Americans to drive less and businesses to scale back operations.

In Guyana’s case, another accountant said, the cost of shipping has increased significantly. He noted that cars do not operate on crude oil but, instead, on refined oil.

At the Guyoil pumps in Georgetown, the price of gasoline was $215 per litre. The same price was also recorded for Berbice and Demerara.

Over on the Essequibo Coast, fuel outlets reported that the prices of kerosene oil and diesel have been fluctuating over the past two weeks.

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