Fuel prices expected to reduce at the pumps

The National Petroleum Authority (NPA) has reduced the margin on the price of fuel from 17 to 9 pesewas per litre.

The 8 pesewas reduction represents 47 percent decrease per litre.

Following the implementation of the newly reviewed taxes on fuel, the margin on prices of petroleum products went up by 17 pesewas per litre.

However, the NPA after a marathon meeting yesterday with stakeholders in the industry reduced the price to 9 pesewas.

A communiqué jointly signed by the Minister for Energy, NPA, Bulk Oil Storage and Transportation Company Limited (BOST), Association of Oil Marketing Companies (AOMCs), Chamber of Petroleum Consumers (COPEC) and Institute for Energy Policies and Research (INSTEPR) said the reduction takes effect from May 5, 2021 and it is expected that the reduction will reflect at the pumps.

The government proposed a 5.7 per cent increment in prices of petrol and diesel as part of new levies it is imposing on Ghanaians.

Until the recent increment, figures from the pumps show that prices of petrol and diesel which were both selling at an average price of GH¢4.7 per litre in December 2020 to average an average of GH¢5.74 as of Mid-March 2021.

Currently, some Oil Marketing Companies (OMC) are displaying GH¢6.13 per litre of fuel at the pumps.

Fuel prices in the country have consistently seen a steady increase since the beginning of the year, sparking fears that consumers may end the year paying an all-time high rate per litre.

The 2021 budget introduced a new 10 pesewas Sanitation and Pollution Levy as well as a 20 pesewa levy to cater for charges on the country’s excess power capacity subject to parliamentary approval.

The Chamber of Petroleum Consumers (COPEC) has indicated that the percentage change in prices within the last two months is an 11% increase.

While many have already and continue to express their displeasure over the fast increasing price at the pumps, things do not appear to look better in the short to medium term.