Business News Wed, 2 Mar 2022

Times are hard, do something about fuel price increment - COPEC to government

Fuel prices hit GH¢8.290 pesewas per litre

Consumers still pay Stabilization and Recovery Levy, Duncan Amoah

Use GH¢2.5 billion revenue to cushion petroleum importers, BDCs

Executive Secretary of Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has accused government of not taking measures to stop the incessant increase in fuel prices at various pumps across the country.

According to him, though the price of diesel and petrol have crossed GH¢8 per litre, Oil Marketing Companies (OMCs) and Bulk Oil Distribution Companies (BDCs) have tried their best to salvage the situation.

He noted that the price of fuel ideally should have been GH¢8.70 though it is selling at GH¢8.290 pesewas at some pumps.

Duncan Amoah questioned why government still charges consumers for petroleum tax when the prices of fuel are above their pockets and income.

Speaking on Starr Today on Tuesday, March 1, 2022, the executive secretary of COPEC said, “Realistically, fuel should be trading around GH¢8.70 as we speak, what is happening is that the OMCs are taking a shave, BDC’s are taking a shave. The only one not taking a shave currently is the government. And the government continues to charge the full stream of taxes at the time when prices are over and above people’s pockets."

“The Stabilization and Recovery Levy of 15pesewas that as I speak with you is still being paid by consumers any time they buy fuel. Times are really rough,” the Executive Secretary for Chamber of Petroleum Consumers (COPEC), Duncan Amoah stated.

He, therefore, called on government to use revenues accrued from the Price Stabilization and Recovery Levy to cushion petroleum importers and BDCs amidst the sharp rise in oil on the international market.

According to Duncan Amoah, an amount of GH¢2.5 billion was raked in as windfall revenue in 2021 adding that amount could have been used to leverage the impact of the increase in fuel prices on consumers.

Meanwhile, the upward adjustment in fuel prices was earlier projected by the Chamber of Petroleum Consumers Ghana and the Institute of Energy Security (IES).

They attributed the upsurge in petroleum products as a result of a sharp increase in brent crude, gasoline, and gasoil on the international market.

Also, the depreciation of the local currency against the US dollar is another contributing factor in the increase in fuel prices in the country.
Source: www.ghanaweb.com
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