The Association of Oil Marketing Companies has revealed that the current fuel prices at the market are not a reaction to proposed tax by the government. In a statement release, it alluded the hikes in prices to the world crude oil prices.
According to the Association, the change in market forces has motivated the increase in prices.
“We have monitored the media landscape. The enthusiastic reaction towards a purported increase in petroleum prices at the pump, following the proposed review on taxes/levies, as presented to parliament.
“[We] would like to state unequivocally that, the current fuel prices on the market are not a reaction to the proposed taxes/levies. But rather the existing world crude oil prices and market forces”.
Subsequently, it explained that the impact of the proposed taxes would only take effect when parliament has approved the 2021 budget. Also, it would require assent by the President “and duly gazetted”.
“At the appropriate time, OMCs will react accordingly, taking into cognizance the effective cost of operations”.
Fuel prices have already risen by some 11% in the last two months and the proposed new taxes could make an additional 5% rise in taxes which will be borne by consumers.
Government proposed tax on petrol
Osei Kyei-Mensah-Bonsu, the Minister for Parliamentary Affairs in his delivery of the 2021 budget statement in Parliament announced the tax proposals on fuel. He stated that 10 pesewas per litre for diesel and petrol as Sanitation and Pollution Levy will be imposed.
Also, 20 pesewas per litre of petrol and diesel will be used as Energy Sector Recovery Levy. This will cover charges on the State for excess capacity of power.
The change has caused a racket with many stakeholders calling for a retraction of the proposed taxes. This, brings hardship on the average Ghanaian, yet to recover from the impact of the pandemic.
That notwithstanding, the OMC’s expressed their gratitude to Government for the introduction of extension of the waiver of interest.
“However, we would like to propose a review on the condition that, beneficiaries must fulfil the first quarter tax obligation for the year 2021. And also consider the increment of the number of days for payment of petroleum taxes from 21 + 4 days to 40 days”.
Fuel price likely to hit rise
Meanwhile, Energy Consultant, Dr. Yussif Sulemana, has indicated that fuel prices are likely to go up from GH¢5.4 to GH¢5.9. This, he explains, would be as a result of the new taxes on fuel stated in the 2021 Budget.
He however, believes government could have surveyed the international market before coming to a conclusion on the new tax imposition on fuel price build-up.
“Probably, the 30 pesewas cumulative price which will translate to about GH¢5.7, the end user is going to pay. I think it will be difficult. It will catapult the price build-up closer to GH¢5.8 or GH¢5.92”.
