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Fuel increments introduce significant cost burden on the average Ghanaian – ACEP


  20 Octobre      2        Economy (12223),

   

 Accra, Oct. 20, GNA – The Africa Centre for Energy Policy (ACEP) Wednesday said the prices of a litre of petroleum products have increased by about 33 per cent this year.
   The Centre said these increments introduced significant cost burden on the productive sector and the average Ghanaian.
    Mr Benjamin Boakye, the Executive Director of ACEP, said addressing that would require pragmatic interventions from the Government, which goes beyond the Price Stabilisation Recovery Levy (PSRL).
    Prices of petrol and diesel have increased in the second pricing window from October 16, 2021 and are selling at GH6.80p at the various pumps.
    With the situation persisting, government has removed the PSRL component of the fuel prices for two months, but this is yet to take effect at the pump as many Ghanaians continue to lament the effects of the increase on their pockets.
    He said the situation called for a holistic review of the downstream price mechanics through the dual regulatory spectrums on taxes and levies from the government.
    He said for the ordinary consumer of petroleum products, any reduction in prices should be welcomed, however, the decision to zero the Levy for the next two months called into question the efficiency of the levy and the delivery of its purpose.
     Mr Boakye said government should immediately apply the estimated accumulated balance of GHC948 million in the PSRL Account to cushion petroleum consumers.
     “Government should ensure that GRA improves the efficiency of revenue collection from the levies to allow the reduction of levies to further cushion consumers,” he said.
     He urged government to take steps to review the margins, taxes, and levies regime for petroleum products to eliminate those that had outlived their usefulness.
    Mr Duncan Amoah, the Executive Director of the Chamber of Petroleum Consumers (COPEC), said the drive of forex could further cause the price of fuel to increase to at least GH¢7.00 by the end of the month.
    He said taxes imposed by the government on petroleum products continued to play a significant role in the rising cost of fuel in the country.
     “Government must make efforts to address the situation to bring relief to citizens,” he said.
    Mr Fritz Moses, a Research Analyst at Institute of Energy Securities, said the removal of the PSRL of GHp16.00 on a litre of Gasoline, and GHp14.00 on Gasoil and LPG would not take effect in this window.
     As of October 11, 2021, the price of diesel stood at GHC6.62 per liter, around 1.1 US dollars. This was a slightly higher value registered than the week before.

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