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As of Thursday April 14 the ad valorem tax on fuel will be reduced from 15% to 10%.  This will result in lowering of petrol prices at the pump of between $4 and $5 per litre.

This temporary measure is to cushion the impact of rising oil prices on the world market on local consumers, and will be reviewed on a quarterly basis in keeping with the changes in world oil prices.

In taking this measure the Government has rolled back and reduced the tax take on fuel to what it was when the price of oil on the world market stood at US$80 per barrel.

The Government wishes to emphasize that the increases in the price of fuel are being driven by the price of oil on the world market and not by taxation.

The Government has taken the decision to make this effective ahead of the presentation of the 2011-2012 Budget in the interest of continued economic stability.

The Government also wishes to remind everyone that every effort must be made to conserve on the use of fuel.

 

Issued by: Communications Unit (OPM)