Duty on fuel reduced

Government yesterday reduced excise duty on fuel, in a move expected to result in a decline in prices of basic goods, as high production cost structures were being partly attributed to high fuel prices.

The reduction, which took effect from midnight, followed an outcry by the business sector that high fuel prices were contributing significantly to the cost of doing business, accounting for some price increases on basic commodities.

Excise duty on petrol fell by 6.5 cents from 45c per litre to 38.5 cents while that on diesel and paraffin declined from 40 cents per litre to 33 cents per litre.