Energy think tank, the Institute for Energy Security (IES), has also called for the withdrawal of increased margins in the Price Build-Up (PBU) of petroleum products in the country by the National Petroleum Authority (NPA) which is scheduled to take effect on Saturday, May 1, 2021.
According to the IES, it finds amendments in the PBU of the various margins – BOST Margin, the Primary Distribution Margin (PDM), Fuel Marking Margin (FMM) and the Unified Petroleum Price Fund (UPPF) Margin – in addition to the Ghs 30 pesewas Sanitation and Pollution, and Energy Sector Recovery Levies, as nuisance and insensitive to the Ghanaian petroleum consumer, particularly as the impact of the Covid-19 pandemic is still felt by the majority of Ghanaians as the consumer is already burdened with several taxes, in the face of job losses, salary cuts, and collapse of businesses.
“For the UPPF Margin, GHp3 per litre is added on all liquid products except for Premix fuel, MGO Foreign, Gasoil Mines, Gasoil Rig, plus an addition of GHp3 per kilograms on LPG. The PDM has also been increased to GHp11 per litre of Petrol, Diesel and Kerosene. The Fuel Marking Scheme has seen an increment of up to 167% from GHp3.00 per litre to GHp8.00 per litre for all liquid products. The BOST Margin has also recorded an increment of 100% from GHp6 to GHp12 per litre. This new increase for BOST is coming on the back of an initial 100% increase, from GHp3 to GHp6 per litre barely eleven (11) months ago,” stated the IES.
Adding that, there is no justification for the increase in the aforementioned margins.
The IES therefore called on the government and the NPA to immediately withdraw the increased levies on the UPPF Margin, PDM, FMM and the BOST Margin, to alleviate the burden on the ordinary Ghanaian citizen.
The Chamber of Petroleum Consumers Ghana (COPEC), in a press statement issued on Friday, April 30, called for the withdrawal of some Ghs 0.17 pesewas added to the already Parliament approved Ghs 0.30 pesewas tax charge on fuel price as contained in the 2021 budget statement by the NPA.
The Chamber noted that the Ghs 0.17 pesewas addition to the already approved Ghs 0.30 pesewas which are both expected to take effect on Saturday, May 1, will result in a cumulative tax charge of 8.7 percent on fuel prices instead of the original 5.5 percent tax charge in the budget.
“What this means is that the NPA unilaterally has added in excess of 3.2% on current pump prices in addition to the 5.5% new taxes from the 2021 budget. This leads to a fuel price increment of a about 8.7% of current prices,” stated COPEC.
Peruse below details of the press releases as issued by the IES and COPEC:
Withdraw the Increased Margins on Fuel Price Build -Up by Fuaad Dodoo on Scribd
CHAMBER OF PETROLEUM CONSUMERS – GHANA
ACCRA
30/04/2021
THIS INSENSITIVE FUEL PRICE INCREMENT MUST BE WITHDRAWN IMMEDIATELY
Ghanaians are on the verge of being hit with another astronomical increase in the cost of fuel at the pumps at the fuel retail outlets effective tommorow the first day of May.
At the current fuel price averages of Ghc 5.40/litre, most Ghanaians have expressed misgivings about the high cost of fuel leading to increase in costs of living and hardships and expected nothing but policy measures In helping reduce these harsh prices at the pumps.
Contrary to these expectations, the 2021 budget indicated some upward reviews on two taxes namely the Energy Sector Recovery Levy and Sanitation and Pollution levy of 20p/litre and 10p/litre respectively totalling 30 P per litre
As though these two additions which have met a lot of public resistance and misgivings were not enough, the National Petroleum Authority unilaterally has also added another 17p cumulative to the already neck breaking 30p/litre and this is also expected to take effect from tommorow together with the parliamentary approved 30p/litre.
What this means is that Ghanaians will have to cough up 47p/litre instead of the 30p/litre as approved from the budget.
Bost margin has been increased by the NPA by 100% from the current 6p/litre to 12p/litre, whiles UPPF has been increased from 27p to 30/litre, Primary Distribution Margin has been increased from 8p to 11p/litre and Fuels marking Margin has also been increased from 3p to 8p/litre.
What this means is that the NPA unilaterally has added in excess of 3.2% on current pump prices in addition to the 5.5% new taxes from the 2021 budget. This leads to a fuel price increment of a about 8.7% of current prices.
We believe the NPA is becoming a burden on Ghanaians and will need to be reigned in by the authorities from these arbitrary increases at a time as this when the harsh effects of Covid 19 on businesses and individuals are still raging.
Whiles it is on record the country is losing billions of cedis in revenue to the fuel smuggling phenomenon and for which reason we think comprehensive efforts by the state should be directed at blocking the cartel engaged in this act to deliver the needed revenues to the state, we object to any attempts to simply continue adding taxes and unnecessary margins on the fuel price build up which only adds to the increasing hardships on Ghanaians.
We are by this calling on authorities to reign in the NPA to immediately withdraw these new add ons as any attempts to force these unilateral increases by the NPA using the backdoor on Ghanaians will be steeply resisted
Signed
Duncan Amoah
Executive Secretary.