- April 30, 2021
- Posted by: Ato
- Category: Energy
Executive Secretary of the Chamber of Petroleum Consumers Ghana (COPEC), Duncan Amoah, has accused the National Petroleum Authority (NPA) of unilaterally adding some Ghs 0.17 pesewas to the already Parliament approved Ghs 0.30 pesewas tax charge on fuel price as contained in the 2021 budget statement.
In statement issued by the Chamber on Friday, April 30, the Chamber noted the Ghs 0.17 pesewas addition to the already approved Ghs 0.30 pesewas which are both expected to take effect tomorrow, Saturday, May 1, will result in a cumulative tax charge of 8.7 percent on fuel prices instead of the original 5.5 percent tax charge in the budget.
“What this means is that the NPA unilaterally has added in excess of 3.2% on current pump prices in addition to the 5.5% new taxes from the 2021 budget. This leads to a fuel price increment of a about 8.7% of current prices,” stated COPEC.
The Chamber in its press release, said it objects to attempts to simply continue adding taxes and unnecessary margins on the fuel price build up which only adds to the increasing hardships on Ghanaians.
The Chamber further called for the immediate withdrawal of the new Ghs 0.17 pesewas charge stating that attempts by the NPA to force the new charge will be “steeply resisted.”
Peruse below the press statement from COPEC:
CHAMBER OF PETROLEUM CONSUMERS – GHANA
THIS INSENSITIVE FUEL PRICE INCREMENT MUST BE WITHDRAWN IMMEDIATELY
Ghanaians are on the verge of being hit with another astronomical increase in the cost of fuel at the pumps at the fuel retail outlets effective tommorow the first day of May.
At the current fuel price averages of Ghc 5.40/litre, most Ghanaians have expressed misgivings about the high cost of fuel leading to increase in costs of living and hardships and expected nothing but policy measures In helping reduce these harsh prices at the pumps.
Contrary to these expectations, the 2021 budget indicated some upward reviews on two taxes namely the Energy Sector Recovery Levy and Sanitation and Pollution levy of 20p/litre and 10p/litre respectively totalling 30 P per litre
As though these two additions which have met a lot of public resistance and misgivings were not enough, the National Petroleum Authority unilaterally has also added another 17p cumulative to the already neck breaking 30p/litre and this is also expected to take effect from tommorow together with the parliamentary approved 30p/litre.
What this means is that Ghanaians will have to cough up 47p/litre instead of the 30p/litre as approved from the budget.
Bost margin has been increased by the NPA by 100% from the current 6p/litre to 12p/litre, whiles UPPF has been increased from 27p to 30/litre, Primary Distribution Margin has been increased from 8p to 11p/litre and Fuels marking Margin has also been increased from 3p to 8p/litre
What this means is that the NPA unilaterally has added in excess of 3.2% on current pump prices in addition to the 5.5% new taxes from the 2021 budget. This leads to a fuel price increment of a about 8.7% of current prices.
We believe the NPA is becoming a burden on Ghanaians and will need to be reigned in by the authorities from these arbitrary increases at a time as this when the harsh effects of Covid 19 on businesses and individuals are still raging.
Whiles it is on record the country is losing billions of cedis in revenue to the fuel smuggling phenomenon and for which reason we think comprehensive efforts by the state should be directed at blocking the cartel engaged in this act to deliver the needed revenues to the state, we object to any attempts to simply continue adding taxes and unnecessary margins on the fuel price build up which only adds to the increasing hardships on Ghanaians.
We are by this calling on authorities to reign in the NPA to immediately withdraw these new add ons as any attempts to force these unilateral increases by the NPA using the backdoor on Ghanaians will be steeply resisted