Government restores PSRL levy after months of suspension
The government, effective today, Tuesday, February 1, 2022, has restored the Price Stabilization and Recovery Levy (PSRL) on petrol, diesel and Liquefied Petroleum Gas (LPG).
The restoration of the levy after almost 4 months of its suspension was made known via a press statement by the National Petroleum Authority (NPA).
The Authority via its press statement, directed the various Oil Marketing Companies (OMCs) to factor the levy in the ex-pump prices of the petroleum products.
“All OMCs and LPG Companies are to take note of the above and apply them in their price-build-up (PBU) accordingly,” noted the NPA.
According to the NPA, the perpetual removal of the levy from the price-build-up (PBU) will negatively affect the payment of subsidies to suppliers of petrol, diesel and LPG thereby threatening their continuous supply to consumers.
Following the restoration of the PSRL, the PSRL levy on petrol, diesel and LPG per litre still remains at 16p, 14p and 14p respectively.
Price Stabilisation and Recovery Levy on petroleum products suspended for 2 months
The Price Stabilisation and Recovery Levy (PSRL) charged on the sale of various petroleum products in the country was suspended on October 11, 2021, by the National Petroleum Authority (NPA) for two months.
The suspension of the levy followed 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 was 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.
PSRL: Suspension of levy on petroleum products extended for one more month
President Akufo-Addo approved the extension of the Price and Stabilization Recovery Levy [PSRL] on petroleum products for an additional month.
This was per the request of both the Finance and Energy Ministries.
The move by the President was to help reduce the marginal increase in the prices of petroleum products that took effect from January 1, 2022.
But for the extension of the Price and Stabilization Recovery Levy [PSRL] which ended on December 31, 2021, available data suggests that diesel should have gone up by over 4% and petrol by 3% per liter.
However, the extension of the PSRL saw diesel and petrol increase by 2.42% and 2.12% per liter respectively.
Originally, the stabilization levy placed 16 pesewas and 14 pesewas on petrol and diesel in the price build up of the petroleum products.
The request for the extension of the PSRL first came from the National Petroleum Authority to the Energy and Finance Ministries before it was taken to the President for the emergency approval.