Business News Tue, 26 Oct 2021

FLASHBACK: Commend government for fuel prices – Tampuli

Three years ago, the then CEO of the National Petroleum Authority, Hassan Tampuli, called on Ghanaians to laud the government for its intervention in the pricing of petroleum products on the market.

He said the intervention was to reduce the price build up on consumers.

Hassan Tampuli said this at a media engagement forum in the Eastern region.

Read the full story originally published on October 26, 2018 by starrfmonline.

The Chief Executive Officer of the National Petroleum Authority, Hassan Tampuli has said but for the government’s intervention, Ghanaians would have paid 7% more on petroleum products.

He said the economic management team of government has made some interventions reducing the price build up to cushion consumers.

According to him, government has since June this year forfeited taxes amounting to nearly a 300million cedis of the price stabilization levy on petroleum hence the current price despite world market price of petroleum hitting the highest price ever since four years.

“The government interventions by way of taxes, levies and margins in the price build up has led to a significant drop in the taxes on petroleum products from 40%from January 2017 to 26% as of today. The cumulative effect of the reduction in the special petroleum tax and then the complete abolishing of the exercise tax and as we speak today the price stabilization and Recover Levy has also been sent to zero”.

He added that "price stabilization and Recovery Levy fetches the government Ghc33 million cedis every month a tax the government has forfeited. As we speak the government has forfeited for itself nearly 300 million cedis all in the interest of Ghanaians”.

He said, therefore, government deserves a tap at the back rather than condemnation.

He said this Thursday during a media interaction in Koforidua in the Eastern Region.

The CEO of NPA Hassan Tampuli explained further that it is important for Ghanaians to also be cognizant of the fact that government cannot be blamed for the recent fuel hikes in the price of petrol and diesel because determining fuel prices at the pump was taken away from Government in 2015 after the amendment of the price deregulation policy, Regulation 14 of L.I. 2186.

According to him, following the implementation of the price deregulation policy in July 2015, setting ex-pump prices of petroleum products shifted from the Authority to petroleum service providers that is the Bulk Distribution Companies (BDCs) OMCs) which they used several factors including Exchange rate, world market price among others.

He however added that the only products whose prices are still determined by the Authority are Residual Fuel Oil (RFO), Premix Fuel, Aviation Turbine Kerosene (ATK), Gasoil Mines, Marine Gasoil Foreign and Gasoil.

The CEO however hinted that fuel Prices may reduce as the World market price continue to record decrease up to the end of the pricing window.He explained that currently there is 2% decrease in world price for petroleum products and 8% decrease on LPG while cedi is making gains against the Dollar.
Source: www.ghanaweb.com
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