The Public Relations Officer for the Ministry of Energy, Kwasi Obeng-Fosu has intimated that the 8 pesewas reduction in the price per litre of fuel is not related to the new sector levies.
Speaking in an interview while explaining the new directive, he said the decrease has nothing to do with the ESLA levies but rather has to do with the levies on the fuel margins by the National Petroleum Authority (NPA).
“If you look at the levy we took to Parliament, that is not what we concentrated on right now. What we discussed is the levy on the fuel price margin. The margins made the fuel prices shoot up;and as a result the Energy Ministry invited the NPA and other stakeholders for deliberations on what to do about these margins.”Kwasi Obeng-Fosu
He indicated that, some levies which influence these fuel margins were increased and as such the meeting was mainly to deliberate on its reduction.
“After the deliberation we figured that from 17 pesewas we could reduce it so the price will come down. We also asserted that prices cannot be increased highly overnight but has to be done in bits. So, the price that was 17 pesewas, we all agreed that it could be brought to 9 pesewas.”Kwasi Obeng-Fosu
He also indicated that the Energy Minister is also reviewing some issues in the energy sector to help effective operations. Touching on the energy sector taxes, he said that has already been approved by Parliament and there was nothing that could be done about it as at now.
“They have all gone through and approved so that side cannot be touched. Even to tackle it, it has to go through a long process.”Kwasi Obeng-Fosu
Reduction to prevent high transportation cost
Mr. Obeng-Fosu further noted that the reduction was also to help prevent the high increase in transportation prices. He posited also that the reduction is to also benefit the consumers and citizens who patronize public transportation.
“So, if any of these unions had intentions of increasing their transportation prices,; I believe that now that there has been a decrease they will rescind from the high increase. If it is I cedi increment the drivers want to introduce they will have to reduce it to 50 pesewas. And if its also 50 pesewas they will have to reduce it to 25 pesewas.”Kwasi Obeng-Fosu
The National Petroleum Authority published new increases in some margins in the Price Build-Up (PBU) of petroleum products which took effect 1st May 2021.
The amended margins were made available to the various Petroleum Service Providers (PSPs) on the 29th of April 2021, and at the end of the April 2021 second Pricing-window. Also
However, the margin on the price of fuel was reduced by 8 pesewas per litre;after an earlier increment of 17 pesewas. This indicates 9 pesewas increase in fuel prices. The reduction came about after a meeting between the Energy Ministry,; the NPA and other stakeholders to deliberate the increase.