Fuel price increases: Govt lost GH¢182.6 in attempt to cushion consumers – Ofori-Atta

BY: Maxwell Akalaare Adombila
Ken Ofori-Atta, Finance Minister

The Minister of Finance, Ken Ofori-Atta, has disclosed that the government lost GH¢182.6 million in revenues to the temporary removal of the Price Stabilisation and Recovery Levies (PSRL).

He said although the action amount to a loss in revenues to the government, it was necessary to contain the increases in prices of fuel which was hurting Ghanaians.

Mr Ofori-Atta disclosed this when he appeared in Parliament today to answer questions on what measures the ministry was using to address rapid increases in fuel prices and its effect on the citizenry.

Urgent question

The answer was in reference to an urgent question filed by the Member of Parliament for Bongo, Mr Edward Abambire Bawa on the fuel prices and the fortunes of the currency.

The MP had filed the urgent question in the House, demanding answers on what the Finance Ministry is doing to slow down the increases of petroleum product prices at pumps with respect to imposed taxes and levies on the petroleum products and the depreciation of the Cedi.

Responding, Mr Ofori-Atta recalled as part of measures to alleviate the burden of high cost of fuel at the pump on consumers, the government had suspended the PSRL, which is a charge on petrol, diesel, and LPG, from November, 2021 to the end of January 2022.

The PSRL imposes a Ghp16-per litre levy on petrol, Ghp14 pesewas per litre on diesel, and GHp14 per kilogram on LPG.

The levy

The minister said the levy was suspended as part of efforts to cushion consumers from the constant rise in the price of fuel products in the country.

“The suspension of this levy resulted in a loss of revenues of about GH¢182.60 million for the period.

“The government also intervened to suspend the margins on the petroleum price build-up by a total of 15 pesewas per litre effective April 1, 2022, for three months as part of measures to slow down the increasing petroleum products prices at pumps,” he addded.

Giving further details, Mr ofori-Atta said the BOST margin was reduced by two pesewas per litre, the Unified Petroleum Pricing Fund (UPPF) margin by nine pesewas per litre; the Fuel Marking Margin (FMM) reduced by pesewa per litre; and the Primary Distribution Margin (PDM) reduced by three pesewas per litre.