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Saturday, December 4, 2021

Government to lose GH¢116 million over suspension of fuel levy – NPA

The government has suspended Price Stabilisation and Recovery Levies for two monthsThe government has suspended Price Stabilisation and Recovery Levies for two months

The National Petroleum Authority (NPA), has disclosed it will cost the government of Ghana some GH¢116 million in revenue over the suspension of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months.

The Head of Communication of the NPA, Mohammed Abdul-Kudus noted that the indicative prices of the dominant Oil Marketing Companies (OMCs) put the loss to Ghana at a staggering GH¢58 million per month.

“The prices of the OMCs are not the same and you cannot determine the actual figure but looking at the prices of the dominant OMCs in the field and their indicative prices, the consecutive estimate shows that for every month, the Ghanaian government because of the withdrawal of the levy will lose in the neighborhood of GH¢58 million per month. Multiplying this amount by 2 months will give you GH¢116 million. And that is the revenue Ghana will be losing.”

When asked if the prices of fuel will further reduce after the 2 month period, Abdul-Kudus quickly pointed out the volatility and unpredictability of crude prices on the world market.

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“In a month it can slum down or go up again. I am sure the government is thinking the 2 months will be enough to keep the levies at zero or bring it back up,” he told Samuel Eshun on the Happy Morning Show aired on e.TV Ghana and Happy98.9FM.

In a press release yesterday Tuesday, October 11, 2021, the NPA announced;

“The National Petroleum Authority (NPA) wishes to inform the public that His Excellency the President, Nana Addo Dankwa Akufo-Addo, has granted approval to zero the Price Stabilisation and Recovery Levies on petrol, diesel, and LPG for a period of two months.”

It added that this followed advice from the NPA to the Energy Minister for the government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.

“The above approval follows the advice of the NPA to the Hon. Minister of Energy to seek government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.”

“Prices of crude oil and refined petroleum products have seen sharp increases on the world market due to a rise in demand for oil globally without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.”

Currently, the PSRL is 16 pesewas per liter on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel and fourteen pesewas per kilogram (GHp14/Kg) on LPG.

NPA in the press statement said the two levies have been removed for two months to cushion consumers.

“The purpose of the Price Stabilisation and Recovery Levy (PSRL) is to stabilize prices for consumers and pay for the subsidies on Premix Fuel and Residual Fuel Oil (RFO).”

“At this time it is important that the PSRL which is currently sixteen pesewas per liter (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG are zeroed to cushion consumers.”

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