Removal of price stabilization and recovery Levies good -Energy analyst

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Energy Analyst, Dr. Yusif Suleimana, has welcomed the decision by government to zero the Price Stabilization and Recovery Levies on petrol, diesel and LPG for two months.

Although he welcomes this decision, he also wants further actions to be taken to take off some taxes on the petroleum price build-up to significantly impact on price stability.

President Nana Addo Dankwa Akufo-Addo had granted approval to zero the Price Stabilization and Recovery Levies on petrol, diesel and LPG for two months.

A statement issued by the National Petroleum Authority (NPA) said the approval follows the advice of the NPA to the Minister of Energy to seek government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.

Prices of crude oil and refined petroleum products, according to the NPA, have seen sharp increases on the world market due to a rise in demand of oil globally without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.

Because pricing of petroleum products in Ghana is deregulated, changes in prices of petroleum products on the world market have a direct impact on prices at the pumps, the NPA further stated.

“The outlook of prices on the global market shows an upward trend 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.

“The purpose of the Price Stabilisation and Recovery Levy (PSRL) is to stabilise prices for consumers and pay for the subsidies on Premix Fuel and Residual Fuel Oil (RFO). At this time it is important that the PSRL which is currently sixteen pesewas per liter (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG are zeroed to cushion consumers.

“The NPA will work with the Ministries of Energy and Finance to quicken the legislative processes to give immediate effect to this directive by the President.

“We are grateful to H.E. the President for granting the request to zero these levies to minimise the effect of rising prices of petroleum products on the world market on consumers in Ghana.”

Commenting on this, Dr. Yusif Suleimana told Accra-based Joy FM that “I think government could still look at other taxes like SPT/SPG and then the rest. But overall, I think the move [removal of PRSL] is a positive one and we must commend the government for that because this is difficult; and I’m saying that it is difficult because that is the only thing that is possible for the government to do.”

By Laud Nartey|3news.com|Ghana