Josiah
The National Petroleum Authority (NPA) in Ghana has decided to suspend the Price Stabilization and Recovery Levy on petroleum products, which is expected to result in higher costs for petroleum consumers.
In a directive issued on April 3, 2024, and circulated among stakeholders in the oil marketing and distribution sector, the NPA instructed the implementation of additional charges: 16 pesewas per litre for Petrol, 14 pesewas per litre for Diesel, and 14 pesewas for every kilogram of Liquefied Petroleum Gas (LPG).
As a result, the state-owned Oil Marketing Company, GOIL, has adjusted its prices, with petrol and diesel now selling at GH¢14.15 per litre and GH¢14.74 per litre, respectively. These adjustments by GOIL took effect from April 4, 2024.
This recent hike in fuel prices marks the highest increase since February 2023 when a litre of fuel was priced at GH¢15.40 and GH¢15.50 for diesel. Nana Amoasi VII, the Executive Director of the Institute for Energy Security (IES), anticipates a twofold surge in fuel prices during April’s upcoming petroleum pricing window.
Speaking on the Citi Breakfast Show on Citi FM, Nana Amoasi VII criticized the suspension, arguing that it was not thoroughly considered before implementation. He pointed out that the levy had failed to achieve its intended purpose of stabilizing fuel prices, citing historical instances where prices skyrocketed to GH¢18 per litre in 2022.
Nana Amoasi VII warned of an imminent fuel price surge, suggesting that prices could rise to approximately GH¢14.05 per litre, potentially resulting in a double increase. He expressed disappointment in the reversal of the levy suspension by the NPA, noting the lack of clarity on the reasons behind the decision.
He highlighted the impact of the levy suspension on fuel prices, emphasizing the lack of stabilization despite its implementation over the years. Nana Amoasi VII stressed the likelihood of further price hikes in response to fluctuations in the domestic and international fuel markets.
Source:Omanghana.com
