Removing petrol levies won’t reduce prices

Seasoned Journalist, Kwesi Pratt Jnr. does not believe the removal of the Price Stabilization and Recovery Levies (PRSL) on petrol, diesel, and LPG will make a difference regarding the fuel price increments.

The National Petroleum Authority (NPA) has approved to remove fuel levies for two months.

A press statement issued by the Authority’s Corporate Affairs Department, October 11, 2021 read; “The National Petroleum Authority (NPA) wishes to inform the 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.”

This is aimed at mitigating the impact of rising prices of petroleum products on the world market on consumers.

“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 statement further read.

The NPA decision comes after strident calls by the Chamber of Petroleum Consumers (COPEC) for government to remove the Price Stabilisation and Recovery Levy to avert the consistent increase in prices of petroleum products.

But to Mr. Pratt, the levy removal won’t reduce fuel prices neither will it remedy the oil sector situation in Ghana.

Speaking to host Kwami Sefa Kayi on Peace FM’s ”Kokrokoo”, he argued; ”It won’t change the price in any substantial way. In fact, the prices will go up very soon. All the indicators are that, by the end of this month, the prices will be higher than what we’re paying now”.

”There’s nothing to indicate that petrol prices will reduce…The price at the end of the month will be higher than it is today”, he added.