2% fuel prices reduction is an insult to us – Driver unions

Some driver unions in the country are dissatisfied with the government’s two percent decrement in petroleum products.

The driver unions namely, the Committed Drivers Union, the True Drivers Union and the Concerned Drivers Association speaking on Gold Power Drive, Friday, is of the view that the two percent reduction was insignificant and is therefore urging government to fulfil its campaign promise of scrapping the Special Petroleum Tax.

Parliament on Thursday passed the Special Petroleum Tax Amendment Bill, 2008 to reduce the Special Petroleum Tax from 15 to 13 percent.

The passage of the bill means that, the ex-pump price of petrol is supposed to go down by 3.39 percent, while that of diesel will reduce by 4.14 percent.

But the driver unions say the reduction is woefully inadequate, and that Ghanaians will continue to suffer in terms of how much they pay for fuel.

Scrap the bill

Meanwhile, the minority in parliament is asking government to scrap the special petroleum tax because they (government) in the run-up to the 2016 elections described it as a nuisance tax and promised to get rid of it when it assumes power.

They claim that the NDC introduced to shore up government finances due to the continued reduction in the world market prices of crude oil.

They are of the view that since the world market prices of crude is rising, government needed to scrap the tax to bring relief to Ghanaian's.

But Deputy Minister of Finance, Kwaku Kwarteng says government had earlier reduced the special petroleum tax from 17.5 to 15 percent and now reduced it to 13 percent bringing the total to 4.5 percent.

He is surprised that members of the minority whose government(NDC) had introduced the tax are now asking the government to scrap it.