Just before news time, the prime minister released a 12 minute statement discussing his government's response to rising fuel prices, and cost saving measures that Cabinet is being forced to implement.
First though, after the price of diesel increased by one dollars and thirty five cents per gallon on Friday at midnight, Briceno explained that the tax on the fuel has not increased and that in fact, the government is already absorbing some of it.
He then goes on to say that the bus operators will receive a 3 month fuel subsidy in the first instance.
John Briceno, Prime Minister
"When the acquisition cost of fuel rises, that is to say, the price paid by Puma and its suppliers, the excise tax collected by the government does not rise. This is a fixed amount. And this amount, the excise tax collected, has been significantly reduced by the government since the start of this crisis."
"In fact, the excise tax charged on regular gasoline has been cut by 68 cents and the excise tax charged on diesel has been cut by $1.55. These two tax reductions amount to $4.7 million per month or a projected $60 million for this budget year."
"I assure you that if the acquisition cost for fuel continues to rise, the Cabinet will consider further adjustments. We are mindful that if oil prices continue to rise, the government may need to introduce more substantial cost-saving measures."
"If and when that time comes, we will, of course, engage with our partners to ensure proper consultations. With regard to domestic transportation and the recent issues with our bus operators concerning bus fares, the cabinet determined that pricing for roads operated by the National Bus Company will remain at current rates."
"For private bus operators who demanded rate increases, the government has approved a general subsidy that specifically covers the incremental fuel cost. Over the next three months, government will provide a $3 per gallon fuel subsidy to all private bus operators."
"This measure is intended to prevent any major increases in bus fares for commuters who travel within or outside their districts during this period."
But what's Cabinet doing? Well, among a list of things, the PM said they'll try their best to cut down on travel and opt for virtual meetings.
John Briceno, Prime Minister
"Cabinet and I, therefore, have agreed to the following. Firstly, we will defer thirty million dollars in capital expenditures previously programmed for this budget year. Secondly, $25 million will be cut from goods and services allocated across all ministries and departments."
"Thirdly, we will continue to tighten expenditure by significantly reducing foreign and local travel, which will require less subsistence for meetings. This will be achieved by insisting on attending and organizing meetings and conferences virtually."
"We will also continue to cut the government's fuel bill by limiting the use of government vehicles. At the end of the first quarter, we will assess budget performance to determine what additional measures are necessary."
You can see the full statement on our Facebook page.
