Gov’t suspends Price Stabilisation & Recovery levies on fuel  

October 12, 2021 By 0 Comments

The government has suspended the Price Stabilisation and Recovery levies on petrol, diesel and Liquefied Petroleum Gas (LPG) for two months. This brings down the taxes and levies components of petroleum price build-up from seventeen to sixteen.

A litre of petrol and diesel currently sells at GH¢6.52, which is higher than a cedi to US dollar forex rate, and consumers have had to bite their fingers to buy the products.

At 9 am, Monday, October 11, 2021, the international benchmark crude Brent was trading at US$84.22, while West Texas Intermediate (WTI) was trading at US$81.53.

A statement issued by the National Petroleum Authority (NPA) announced the suspension of the Price Stabilisation and Recovery Levy, saying: “Because the 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 outlook of prices on the global market show an upward trend and, therefore, there was the need to seek the government’s intervention to lower the levies to cushion consumers from feeling the full impact of these rising prices.”

The statement explained that the purpose of the Price Stabilisation and Recovery Levy (PSRL) was 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 litre (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogramme (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,” it stated.

The NPA expressed its gratitude to the government 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.

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