Business News Wed, 27 Oct 2021

Minority members demand suspension of petroleum taxes

• Minority members in parliament want government to remove petroleum taxes

• He adds that this will reduce the cost of leaving

• Minority disagrees with government reasons for fuel hikes

The Minority in Parliament is calling on government to suspend the special petroleum tax imposed on products.

This they say will reduce the burden on Ghanaians due to the high cost of fuel.

“We hold the view that the special petroleum tax imposed on petroleum products must be suspended in the 2022 budget. This will provide some respite for Ghanaians from that agonizing high cost of fuel at the pumps.”

Addressing a press conference in parliament, Ranking Member on the Energy Committee of Parliament, John Jinapor who spoke on behalf of minority members, said there has been an increment in prices of fuel from $54.75 per barrel to $85 in 2021.

This he says represents 55 per cent increment and cause of hardship in the country.

“If you look at the 2021 budget, the benchmark petroleum price was pegged at $54.75 per barrel. Today, the world market price has risen to $85 representing an increment of 55%, so if you take what we projected and what is actually happening, it means that petroleum prices have increased by 55%. As a net exporter of petroleum products, we have done the computations and we have come to the conclusion that from the initial amount of $800 million that we were projecting to receive, we are likely to hit $1.2 billion by the end of the year,” John Jinapor said.

The minority also indicated that they do not agree with the excuse government has given as the reason for fuel increment.

“It may interest you to know that within a spate of just one year, fuel prices have risen from 4.77 cedis per litre to 6.8 cedis per litre representing a whopping 43% increment under this insensitive government. These astronomical increases have resulted in untold hardship which is threatening the lives of ordinary Ghanaians,” he further said.


“The minority has equally taken notice of the lame and flimsy excuse from the government and its communicators that they cannot do much to cushion Ghanaians because in their own words “they do not control the world market price of crude”.

“What they have failed to inform Ghanaians about is that the devaluation of the cedi is a major contributor to these astronomical increases.”

“We wish to state emphatically that, we completely and flatly reject these lame excuses from the government; the question we seek an answer to is, since when did the current NPP government, led by President Akufo Addo and Dr Mahamudu Bawumia realise that the government had no control over world market prices?” he said.
Source: www.ghanaweb.com
Related Articles: