The diesel subsidy to Public Service Vehicles and the Transport Board which was established nearly six years ago as a price offset and excise tax waiver, will be discontinued from April 1, 2014.
This was revealed in a statement issued today by the Ministry of Energy, which indicated that Public Service Vehicles (PSVs) and the Transport Board will now have to purchase diesel, inclusive of excise tax.
In addition the Transport Board will no longer be used as a fuelling facility for PSVs.
Meanwhile, the Ministry has pointed out that the excise tax waiver, which is applicable to manufacturers, farmers and fishermen will remain in place.
The diesel subsidy was established by Cabinet on May 22, 2008, as a shield for the productive and transport sectors.
This subsidy included a waiver of excise tax and a price offset of 7.906?? per litre, which took effect from June 1, 2008. It was then decided that a price offset of 23.180?? per litre should also be given to manufacturers, farmers and fishermen.
Since the introduction of the price offset and the excise tax waiver for the transport sector, bus fare has increased from $1.50 to $2.00 per trip.