Consumers are skeptical about reduction in prices of petrol, diesel and Liquefied Petroleum Gas (LPG) after government removed two levies from petroleum products on Monday October 11, 2021.
The government of Ghana has announced removal of two levies thus Price Stabilization and Recovery levies from petroleum products for 2 months. These products include; petrol, diesel and LPG.
This was announced by the National Petroleum Authority (NPA) through a press statement which was released on October 11, 2021.
However, when Mynewsafric.com went to the town to solicit views of some commercial drivers, popularly referred to as ‘Trotro’ and taxi drivers who mainly use petrol and LPG, they said the levies are insignificant and cannot have any impact in reducing the rapid increase in  fuel prices.
They have therefore described the gesture from the government as inconsequential.
Another driver also said the removal of those levies for 2 months was irrelevant and that those levies should be scrapped off totally.
Some big consumers of LPG for their household use who spoke to Mynewsafric.com have welcomed the announcement as good news but doubted if the price of LPG will actually go down.
Fuel prices over the past few months have been on the increase which has resulted in the upward adjustment of transport fares, creating discomfort to passengers and consumers.
Full statement from NPA
PRESS RELEASE
The National Petroleum Authority (NPA) wishes to inform the general public that His Excellency the President, Nana Addo Dankwa Akufo-Addo, has granted approval to zero the Price Stabilisation and Recovery Levies on petrol, diesel and LPG for a period of two months.
The above approval follows the advice of the NPA to the Hon. 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 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 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.
Signed
Corporate Affairs Department
Monday, 11th October 2021
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