Drivers and other consumers of petroleum products can heave a sigh of relief, as fuel prices are expected to go down in the coming days. This follows President Nana Akufo-Addo’s approval for the removal of two levies on petroleum products.
This comes amid concerns from a cross-section of the public about the impact of rising fuel cost on their pockets.
The President has approved the removal of the Price Stabilisation and Recovery levies (PSRL) on petrol, diesel and LPG for two months.
This intervention follows an advice from the National Petroleum Authority to the Energy Minister to seek the government’s intervention to mitigate the impact of the rising prices of petroleum products on the world market on consumers.
The NPA in a statement indicated that prices of crude oil and refined petroleum products had seen sharp increment on the world market due to a rise in demand for oil globally, without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.
It further stated that 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 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 statement said.
“At this time, it is important that the PSRL, which is currently 16 pesewas per liter on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and 14 pesewas per kilogram on LPG are zeroed to cushion consumers,” the statement added.
The NPA assured the general public of its commitment to 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 His Excellency, 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,” the NPA added.
Meanwhile, the Minister of Energy, Dr Matthew Opoku-Prempeh, has explained that the move is critical in alleviating the plight of consumers in the face of recent hikes in fuel prices.
He said this when he received a delegation from the Ghana Energy Awards (GEA) last week.
While some analysts say the move will offer some relief to consumers of fuel products, others think the suspension of the levies will not produce any significant effect on the prices of fuel products.