As the world inches closer to war with Iraq, which supplies approximately two per cent of today's demands, the price of oil is likely to undergo a series of increases that will punish small Third World economies and put a brake on some aspects of their development.

Already, the region is experiencing manifestations of social unrest that is directly linked to the hikes in fuel costs. Unfortunately one man in Jamaica lost his life as he attempted to defy the collective decision by his colleagues to protest the gas hike. In Haiti, the chronic miseries of abject poverty were made worse when fuel prices shot up. In Guyana earlier this week, minibus operators from Better Hope on the East Coast of Demerara conducted a peaceful demonstration to draw attention to their plea for an increased fare structure. On Wednesday, dozens of minibuses, which usually ply "Route 41' (Stabroek area to South Ruimveldt) were parked at the Square of the Revolution in Georgetown while owners, drivers and conductors voiced their demands for fare increases. By the time the meeting was over, a consensus fare regime had been worked out and the operators announced that their vehicles would be rolling again by Thursday morning with posters of the new fare structure pasted on the buses. Up to this point, the Government, through the Minister of Tourism, Industry and Commerce, was voicing concern over the fare hikes, and was advising commuters to enquire about the fare before boarding any vehicle in order to avoid confrontation with minibus operators.

In the meantime, the daily activities of hundreds of East Coast residents were seriously disrupted. On Monday - the first day of the imposed fare increases, schoolchildren were forced to stand at parks for long hours until they could be rescued by one of the minibuses still operating with the regular fare regime. Some women, who worked in the city, had to pay extra high bus fares or were forced to take special taxis to get home to East Coast villages. Most of these women wondered how they would ever be able to meet the new fare increases on their limited salaries. One 40-something female Security Guard indicated to her colleagues that she would have to seek a downtown posting within a short distance from the minibus park, since she could no longer afford to pay for the two bus rides to her current posting in the Bel Air Park area.

Fortunately, for this working mother and many other commuters, the Minister of Finance, Mr. Saisnarine Kowlessar, announced Thursday that with immediate effect, the consumption taxes on gasoline and diesel would be reduced. The minister, who then advised that all recently imposed fare hikes should be withdrawn, noted that while the reduction will result in a loss in Government revenue, "we have taken this move so as to bring relief to the travelling public, the manufacturing sector, farmers, fishermen, etc...In light of this reduction in consumption tax, Government does not expect that there will be any increase in public transportation fares or in prices of other products."