Petroleum Prices To Be Increased By October

Petroleum prices may increase by about 15% by the end of October. Parliament has passed a bill, which gives the energy minister the powers to announce an increase in petroleum prices anytime he chooses. The bill will impose a 15 percent excise duty and a specific excise duty of 200 cedis per litre on the ex-refinery prices of premium petroleum, gas oil, and aviation fuel.

The bill will also impose a specific excise duty of 100 cedis on the ex-refinery prices of kerosene and liquefied petroleum gas. There are signs that the energy minister will announce these increase earlier than October because government hopes to rake in about 200 billion cedis in revenue from the price increases, part of which will be used to pay off the debts of the Tema Oil Refinery.

Government also needs the money to improve the domestice primary balance and strengthen the revenue management of the economy. Petroleum prices were last increased in February by 64 per cent, barely a month after the NPP took office.

The Minority NDC Members of Parliament say government has no justification to increase petroleum prices for the second time this year. The Minority Spokesman on Energy, Kofi Asante, contends that a second petroleum price increase in less than 12 months would have a knock-on effect on the prices of goods and services and worsen economic hardships in the country.