Revealed: Parliament approved 2.9% – 5% fuel price increase not 27%

seth-terkper-9-413x330New information from Parliament has revealed that the Ministry of Finance only sanctioned a 5% and a 2.9% increase in the price of petrol and diesel, which took effect from Monday January 4, 2016.

Fuel prices at the pumps had gone up by between 22% and 27% following the the passage of the Energy Sector Levy (ESL) by Parliament in Decempber 2015.

The price of LPG also went up by about 18%.A report by the Parliamentary Select Committee on Finance however revealed that Parliament approved a 5.18% increase for  the price of petrol, 2.90 percent for Gas Oil and 1.74 percent for LPG.

The information was captured in the report by the Committee on the Energy Sector Levies Bill 2015.

According to the report, the Finance Minister Seth Terkper told Parliament that the Bill sought “to realign petroleum related taxes by implications on the ex-pump price of petroleum products which would be announced Wednesday December 23, 2015.”

Based on explanation by the Minister, the Committee recommended that “there is therefore an urgent need to pass the Energy Sector Levies Bill, 2015 to avert speculation by retailers and possible artificial shortage in the market.”

The fuel price hikes have been criticised by many Ghanaians who are questioning the rationale behind the move since there has been a drastic drop in the price of crude on the international market.

Below is a table captured in the report:

Product Average market price(1st Dec, 2015)

GHp/Lt or KG

Estimated ex-pump prices (16th Dec, 2015)GHp/Lt or KG % change wrt to existing price
Premium 273.18 287.33 5.18
Gas Oil 266.40 274.12 2.90
LPG 280.83 285.71 1.74

The President of the Ghana Chamber of Bulk Oil Distributors (CBOD), Senyo Horsi in an interview on Eyewitness News said, per their calculations, the latest increases at the pump is accurate.

“…not that we are looking at making some form of profit. As a matter of fact BDCs have reduced their prices in the last few weeks in tandem with the world market trends. We respond to the world mark.The situation you have at the pump is just a reflection of the impact that the new taxes have had on the X-Pump price. The taxes are quite a number…so it has some extra impact,” he added.

source: citifmonline.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.