The Minority in Parliament is demanding immediate scrapping of three taxes on petroleum products to cushion Ghanaians against rising prices of crude oil on the international market. Consumers are currently buying Petrol and Diesel above 8 cedis from the pumps. The development has led to a 15 percent price hike in transport fares.
Speaking to the press in Parliament, MP for Bongo and a Minority member of the Mines and Energy Committee, Edward Bawa indicated that price per litre for fuel may hit GH¢9 if immediate steps are not taken to remove taxes such as Energy Sector Levy, Sanitation and Pollution Levy and Special Petroleum Levy from the price build-up.
“It is very true that if you look at the process of crude, it is skyrocketing, so it means it is a key factor, however, the prices of crude are not the only factors affecting our prices. The other two are monetary policy, tax and levies, and statutory margins that are put on petroleum products. They are the three main factors that affect petroleum products. The government has control over the taxes… So the government can take that off.”
Fuel prices at some fuel stations have crossed the GH¢8 per litre mark in the first week of March 2022 with predictions that the commodity will sell at GH¢9.00 per litre by close of the month.
The National Petroleum Authority (NPA) has already said discussions are ongoing with the Ministries of Finance and Energy to find a manageable solution to the persistent rise in fuel prices.
It said the deliberations will focus largely on the possible removal of some taxes on petroleum products.
“We are also concerned, there are a lot of discussions we are having with the Ministry of Energy, and we are seeing if together with the Ministry of Finance, we will make some proposals,” Head of Pricing at the NPA, Abass Ibrahim Tasunti earlier said.