Following a joint initiative by the Ministries of Tourism, Economic Affairs, Traffic and Telecommunication (TEATT), Finance and Justice, the Council of Ministers has approved a 50% reduction in the excise tax on gasoline. This measure will bring the maximum gasoline price down from XCG 3.102 to XCG 2.853 per liter, providing relief to households and businesses ahead of the holiday season.
Effective Thursday, November 12th at 6:00 a.m., the maximum consumer prices will be:
The decision reduces the special import duty on gasoline from XCG 0.29 to XCG 0.145 per liter, equivalent to a reduction from XCG 29.00 to XCG 14.50 per hectoliter.
The decision follows a price adjustment request received from Sunoco, also doing business as SOL, on October 23, which indicated an increase in gasoline costs. This prompted the Ministries to examine how Government could reduce the burden on consumers through the portion of the fuel price within its control. The latest purchase costs, verified by the Department of Economy, Transportation and Telecommunication (ETT) against international Platts postings, have been incorporated into the updated maximum prices.
By reducing the gasoline excise tax by 50%, Government is lowering the tax burden carried by consumers each time they fill their tanks. Under the updated price calculation, gasoline would cost XCG 3.013 per liter with the previous excise rate. With the approved reduction, the maximum price will be XCG 2.853 per liter.
For someone purchasing 40 liters of gasoline, this means a total saving of XCG 9.96 compared with the current price. Of that amount, XCG 6.40 is attributable to Government’s relief measure, with the remainder resulting from the market-related price adjustment.
“People feel these costs every time they fill their tank. They still have to get to work, take their children to school and manage their everyday responsibilities. With the holiday season approaching and traffic congestion adding to fuel consumption, this reduction comes at an important time,” said Minister of TEATT, the Honorable Grisha Heyliger-Marten.
“We cannot control international fuel prices, but where we have room to ease the burden on our people, we must act. That is what we are doing by reducing this duty. For someone purchasing 40 liters of gasoline, this decision means XCG 6.40 that stays in their pocket. We know this will not solve every financial challenge, but it is a practical step we can take now to help.”
The Ministry of Finance assessed the revenue implications and identified the fiscal space and necessary budgetary adjustments to accommodate the reduction, with anticipated budgetary surpluses providing financial coverage for the measure.
“Providing relief must go hand in hand with responsible financial management. We have examined the impact on Government’s revenue and identified the room to accommodate this reduction. This allows us to respond to the pressures facing households and businesses while continuing to meet our financial responsibilities,” said Minister of Finance, the Honorable Marinka Gumbs, who also serves as Acting Minister of Justice.
The decrease in diesel prices results from lower market-related costs. The excise tax reduction does not apply to diesel.
This temporary measure may take place for a period of two to three months, with the possibility of reassessment. Subsequent fuel price announcements would clearly identify the relief provided, allowing the public to understand how the measure affects the amount paid at the pump.
Alongside the relief measure, Government is advancing legislative work concerning the special import duty on gasoline. A draft amendment to the relevant national ordinance was submitted to Legal Affairs on November 2, 2026, for assessment and advice, taking into account matters previously raised by the Council of Advice concerning a similar approach.
The Ministry of TEATT will continue to monitor fuel price developments and clearly identify the effect of the relief in subsequent price announcements. This will allow the public to distinguish between changes arising from international market conditions and the additional benefit provided by Government’s decision.
The Ministries of TEATT, Finance and Justice reaffirmed their commitment to coordinated action that delivers practical relief, responsible financial management and clear information for the community.
