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…says mechanism is a price stabilizer Taxes are used as a mechanism for stabilising the price of a commodity wherein when the price on the world market for a product such as gasoline and diesel rises the excise tax levied against it on import will reduce and as the price falls, tax will go back up.This is according to Head of State Bharrat Jagdeo who lashed out at the opposition parties for their comments against the recent increase in the excise tax on the two products.The excise tax on gasoline was hiked from seven to 20 per cent and diesel from zero to 14 per cent on September 4 last. “This is to ensure that we have stability in price of product.”He said that if the excise tax remained excessively low when the price reduced on the world market, “then there would be no cushion when the prices go up back.”He posited that this was the reason why gasoline was selling at the various stations for just about $1,Cheap Spain Soccer Jerseys,000 per gallon rather than $1,600 or more per gallon.He lashed out at the critics of the increase, saying that “they” do not address the background to a situation.The President also said that he was prepared to lower the excise tax on gas if minibuses and taxis would drop their fares.“I am not going to pass on greater benefits to minibus operators at the expense of the consumer…I prefer to take the money and give to property related programs…Not the taxi drivers and minibus operators.”When the gas prices began to spiral out of control,Cheap Jerseys, the President had ordered the reduction of the excise tax on gasoline and diesel from 50 per cent, eventually to seven and zero percent respectively.Likewise, when the price of fuel on the world market dropped from an all time high of US$147 a barrel to below US$85, the excise tax was increased to 20 per cent for gas and 14 per cent for diesel.This attracted a plethora of criticism from the parliamentary opposition parties.This newspaper has also learnt that the prices at the pumps are unlikely to decrease anytime soon,Cheap Baltimore Orioles Jerseys, given that the current supply of fuel on the markets were purchased at the increased prices and any new supply will incur the new excise tax.Recently, the Alliance for Change called on the government to reduce the price of gasoline at the pumps which is currently in excess of $1,Cheap Houston Texans Jerseys,000 per gallon.This, the party said, would be in response to the marked decrease in the international prices for oil.When there was a movement upwards in the world market price,Wholesale NFL Jerseys, Guyanese saw an almost instantaneous rise at the pumping stations throughout the country.The party noted that despite the incremental decrease in the world market price over the past months, to the present level of approximately US$85 per barrel, “that corresponding instantaneous decrease at our pumping stations is markedly absent.Price per gallon of gasoline and dieseline at these stations still remains as if the international prices have not dropped at all from the all-time high.”The party had stated that it was very concerned that the government has remained mum on this development,Cheap France Soccer Jerseys, which has had very adverse effects on both the players in industry and ordinary consumers.The party at that time had said that information reliably released to it had stated that the only beneficiary of these continued high prices for gasoline and dieseline here in Guyana has been the Government of Guyana, which the party said ‘has’ re-applied the heavy taxes on fuel sold to the consumers.The government is thus making a whopping windfall profit, while the individual citizen suffers a deleterious deficit…This,Cheap Green Bay Packers Jerseys, once again, is governmental action that is wholly uncaring and unreasonable.”During mid September the price for diesel and kerosene oil had showed a small reduction on the local market.This reduction was felt country wide as fuel outlets across the three countries reported that the commodity recorded a slight reduction.However,Cheap Chicago Blackhawks Jerseys, the price of gasoline remains the same.Speaking with Kaieteur News at that time, a prominent private chartered account had said that given the reduction in the price of the commodity on the world market,Cheap Jerseys Free Shipping, one would have expected to feel the trickle effects in Guyana.In Guyana, Government reduces the excise 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.