The National Petroleum Authority (NPA) has removed the Price Stabilisation and Recovery Levy from the price build-up of petroleum products.
The new directive will take effect on Monday, April 1, 2024, over the next three months.
According to the NPA, the Ministry of Finance, through the Ministry of Energy, directed the regulator to “remove the Price Stabilisation and Recovery Levy (PSRL) from the Price Build-Up in accordance with section 2 (b) of the Energy Sector Levies Act 2015 (Act 899) amended 2021, Act 1064 for three months.”
Following the directive, the NPA, in a statement dated March 28, 2024, informed all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) that “PSRLs have been revised as indicated in the Table below for the period 1st April – 30th June 2024.
The statement added that the removal of the PRSLs is an “intervention from the government to insulate consumers from paying high fuel costs” at the pumps due to rising global prices.
The NPA therefore urges all distributors to comply with the latest directive and be guided accordingly.
Read the NPA statement below:
About the PSRLs
The Price Stabilization and Recovery Levy, governed by the Energy Sector Levies Act 2015 (Act 899), grants the NPA the authority to impose levies with the objective of stabilizing petroleum product prices over specific periods.
Presently, the levy structure encompasses 16 pesewas per litre for petrol, 14 pesewas per litre for diesel, and 14 pesewas per kilogramme for LPG.
Historically, the government has leveraged this interventionist mechanism as a counter-cyclical tool, providing relief to consumers during periods of price surges and reinstating levies when prices retreat to predefined thresholds.