The National Petroleum Authority (NPA) has reduced the addition of Ghs 0.17 pesewas to the already Parliament approved Ghs 0.30 pesewas tax charge on fuel price as contained in the 2021 budget statement.
The reduction in the price of fuel followed a meeting between the Minister for Energy, the NPA, Association of Oil Marketing Companies (AOMCs), Bulk Oil Storage and Transportation (BOST), Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Policies and Research (INSTEPR).
The reduction according to a joint press statement issued on Tuesday, May 4, takes effect today, May 5, 2021.
As earlier reported by norvanreports, increments in the price margins of petroleum products in the country by the NPA, resulted in the astronomical increase in the prices of fuel, as a litre of diesel and petrol which prior to the upward adjustment by the NPA was Ghs 5.40 pesewas, shot up to Ghs 6.13 pesewas on Tuesday morning.
With the reduction in the initial 17 pesewas charge by the NPA, it is expected that fuel prices at the various pumps will fall to reflect the Ghs 0.8 pesewas reduction made starting today, May 5.
Background
On Tuesday morning, May 4, 2021, prices of diesel and petrol at the pumps – Shell outlets – were increased by 11.1 percentage points, 3.2 percentage points more than the earlier projected 8.7 percent increment in fuel prices over the National Petroleum Authority’s (NPA) unilateral decision to add 17 pesewas to the prices of fuel.
In monetary terms, this translated into a Ghs 0.73 pesewas increment in the price of the petroleum products from the previous Ghs 5.40 pesewas per litre to Ghs 6.13 pesewas.
Increment in the prices of the petroleum product was despite resistance from the Chamber of Petroleum Consumers Ghana (COPEC) and energy think tank, the Institute for Energy Security (IES).
COPEC in a press release accused the NPA of unilaterally adding some Ghs 0.17 pesewas to the already Parliament approved Ghs 0.30 pesewas tax charge on fuel price as contained in the 2021 budget statement.
In statement issued by the Chamber on Friday, April 30, the Chamber noted the Ghs 0.17 pesewas addition to the already approved Ghs 0.30 pesewas 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 about 8.7% of current prices,” stated COPEC.
The Chamber in its press release, objected to attempts to simply continue adding taxes and unnecessary margins on the fuel price build up which only adds to the increasing hardships on Ghanaians.
The IES also in a press release, supported COPEC and called for the withdrawal of increased margins in the Price Build-Up (PBU) of petroleum products in the country by the NPA.
Read below details of the joint press statement:
