Fuel prices remain high after NPP 100 days in office – COPEC-Ghana

The Chamber of Petroleum Consumers –Ghana (COPEC) has revealed that prices of fuel at the pumps in the country still remain high following the 100 days in office by the New Patriotic Party’s led government.

According to the Chamber, the past 100 days of the new government has been a mixed one, with strong and positive initiatives, though average pump prices continue to remain very high.

In a statement released in Accra in connection of the 100 days in office by the Akufo-Addo-led government, the group stressed the need for the government to be much firmer in its control of the deregulation environment to ensure that prices are ultimately fair and reasonable.

The Chamber, among other things, noted that fuel prices across the country continue to remain high with taxes accounting for close to 48.7 percent of the pump price, even though there were some reductions made on two of the tax components on the petroleum price buildup,  namely Excise Duty (0.26p/litre) and Special Petroleum Tax (from17.5% to 15%).

“The net effect of the reduction of these two tax components comes to approximately 2.68% reduction on pump prices, while market factors has contributed to 19.68% and 3.82 % increase and decreases respectively within the same period, leaving a variance of about 10.27% increase which the consumer is hoping would see a reduction to in the coming days,” it stated.

The group further intimated how some petroleum service providers have resorted to diluting fuel products to maximize profit, since the downward adjustment made by the government has not yielded any positive results.

“It is also sad to say that some petroleum service providers in their quest to maximize profit have often engaged in one of the biggest challenges that continue to confront the downstream – adulteration. This phenomenon, though high on the priority of the regulator, continues to be a major challenge to the Ghanaian consumer, as the modus operandi of these wicked players keep changing making it difficult to track and disband,”

COPEC –Ghana then suggested that although further reduction of taxes on petroleum products would be a welcome move, a lot more still needs to be done, especially with the Special Petroleum Tax (SPT) which was introduced to shore up government’s petroleum export revenue in the ESLA around the time when world market indexes were way below $40/barrel, world market prices stayed above $50/barrel for over a half year now and is expected to hit $60 in the next few months.

 

 

Source: therepublicnewsonline.com/ Nana Appiah Acquaye

The Republic News Online

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