NPA says removal of levy on petroleum products not a panic reaction to rising fuel prices
The National Petroleum Authority (NPA) has denied assertions that the removal of the Price Stabilisation and Recovery Levies (PSRL) on petrol, diesel and LPG was a panic reaction.
Commenting on the move by the NPA, Abass Ibrahim Tasunti, Head of Pricing at the NPA noted that contrary to public assertions, the levy per the law can be used to mitigate or stabilise prices.
“So it is not a panic measure if you ask me, as I said the act clearly states that this levy can be used to mitigate or stabilise prices. That is what the law says.
“This is not the first time the NPA has requested for such an intervention. We have removed these levies just to cushion consumers so it is not a panic measure,” said Mr Tasunti.
He added that, “The reason why we requested for two months is that because prices are not in our control we don’t know what will happen in the next month, however, we know that for the next two months at least if this is taken off it can give consumers some relief.”
He expressed hope that Parliament will approve the request for the removal of the levies when it returns from recess later this month.
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Background
The NPA in a press release on Monday announced the suspension of the Price Stabilisation and Recovery Levy (PSRL) charged on the sale of various petroleum products in the country for two months.
The suspension of the levy follows a directive by the President, Nana Akufo-Addo.
Announcing the suspension of the levy, Chief Executive Officer (CEO) of the NPA, Dr Mustapha Hamid noted the levy suspension is to mitigate the impact of the rising prices of refined petroleum products on the world market on Ghanaian consumers.
“The outlook of prices on the global market shows an uptrend and therefore there was the need to seek government’s intervention to lower the levies to cushion consumers from feeling the full impact of these rising prices,” said Dr Hamid.
Presently, the PSRL on a litre of petrol and diesel is 16 pesewas and 14 pesewas respectively. On a kilogram of Liquified Petroleum Gas (LPG), it’s 14 pesewas.
