Taxes on petroleum products a bad timing – Petroleum Expert

Petrochemical Engineer and an Energy Expert, Dr Yussif Sulemena, has stated that the government's decision to introduce new taxes on petroleum products is bad timing hence the decision must be reconsidered.

In an interview with GhanaWeb, Dr Sulemana said oil prices on the international commodities market are already skyrocketing to about $70 per barrel and adding on taxes to petroleum products at the local market level could have an impact at the pumps on consumers.

“The issue of taxes again being imposed on petroleum products especially gasoline and diesel about 10 pesewas I believe will translate to about 5 to 6% at the pump. I think the timing for that particular tax component is a bit misplaced,” he said.

He further stated that the government should rather think about reducing taxes and make efforts to make the industry attractive enough for investors.

However, the Minister for Parliamentary Affairs Osei-Kyei-Mensah-Bonsu in presenting the 2021 Budget statement last Friday hinted that it has become very necessary for Government to consider a review of the energy sector levies.

“The Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA is hereby submitted to this House for approval. I should note that on the basis of existing world crude oil prices, the implementation of the two proposed levies for sanitation and pollution as well as to pay for excess capacity charges, would result in a 5.7% increase in petroleum prices at the pump.” He stated.

Listen to the full interview below;