President Nana Addo Dankwa Akufo-Addo has granted approval to remove the Price Stabilisation and Recovery Levies on petrol, diesel and LPG for a period of two months.
The approval followed the advice of the National Petroleum Authority (NPA) to the Minister of Energy to seek government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.
Prices of crude oil and refined petroleum products have seen sharp increases on the world market due to a rise in demand for oil globally without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.
A release by the NPA on Monday said because the pricing of petroleum products in Ghana is deregulated, changes in prices of petroleum products on the world market have a direct impact on prices at the pumps.
The outlook of prices on the global market, it said, shows an upward trend and therefore there is the need to seek government’s intervention to lower the levies to cushion consumers from feeling the full impact of these rising prices.
According to the NPA, the purpose of the Price Stabilisation and Recovery Levy (PSRL) is to stabilise prices for consumers and pay for the subsidies on Premix Fuel and Residual Fuel Oil (RFO).
“At this time it is important that the PSRL, which is currently sixteen pesewas per litre (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG are zeroed to cushion consumers,” the statement said.
The NPA assured it will work with the Ministries of Energy and Finance to quicken the legislative processes to give immediate effect to the President’s directive.