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Major announcement awaited today
2006-05-25 08:17:29
By Guardian reporter
The controversy over high taxes on oil products might be laid to rest today when Prime Minister Edward Lowassa issues a statement following a two-day meeting between the government and players in the oil industry.
The meeting was precipitated by consumers’ complaints over sky-high oil prices that led to a sharp rise in the transport costs.
An attempt by the government to keep a lid on costs was met with complaints by players in the transport industry who said high taxation and import duty had forced them to increase transport charges to cushion them against imminent losses.
Adversely affected were travellers who have had to bear with rising fares on the back of steep fuel prices.
At the height of the controversy last week, the government directed public service owners to refrain from raising fares as it would negatively affect people in the low income bracket.
At yesterday’s meeting, the government and oil industry players deferred any decisions, pending the conclusion of today’s meeting at which a way forward would be found.
Yesterday’s meeting was held in camera, although sources said the atmosphere was one of friendliness.
Against this backdrop, it would not come as a surprise if the government made some tax concessions to cushion consumers against steep oil prices.
The meeting is being held at a time when oil prices have begun to relent from an-all time high of US$73 a barrel on the world market a fortnight ago to being quoted at around 71 US dollars as of yesterday.
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