Business News of Friday, 1 December 2017
Fuel consumers will from Friday December 1, 2017 be insulated from paying high cost of the commodity at the pump.
This is because government has decided to stabilize prices of petroleum products under its price stabilization mechanism captured in the Energy Sector Levies Act 2015.
As a result, all OMCs and LPGMCs have been notified by the Petroleum Regulators, NPA, to review the prices of the products in line with the revised Price Stabilization and Recovery Levy (PSRL).
A November 30 letter written by the NPA to all OMCs, a copy of which has been intercepted by Myjoyonline.com said: “All OMCs/LPGMCs are to note the above review of the PSRL and apply it in their price build up effective 1st December 2017.”
Per that revision, a litre of diesel which currently sells 10 GHp will now be selling at 3 GHp. The price of LPG will also be revised by that same margin. Petrol which is selling at a litre price12 GHp will remain unchanged.
One of the main determinants of fuel prices on the international market is the crude oil price on the international market.
Due to the fluctuation in prices of the commodity on the international market, consumers in Ghana suffer many price hikes even when the local currency is relatively stable.
Consumers in Ghana have recently been enduring price hikes in petroleum products on account of increases in crude oil prices on the international market.
In an attempt to stabilize the prices, the Energy Ministry directed the NPA to activate the Price Stability and Recovery Levy (PSRL) under the Energy Sector Levies Act 899 which is to provide stability for consumers at the pump in times of rising prices of petroleum products on the international market.