Abolish Special Petroleum Tax – Minority

The Minority spokesperson on Mines and Energy, Muntawakilu Adams, has reiterated the need for government to abolish the Special Petroleum Tax.

He said the levy, when abolished, will ensure an 8 percent reduction in fuel prices.

Speaking in an interview on Citi FM, he said “We are saying that the special petroleum tax has outlived its usefulness. The purpose for which it was taxed is no more relevant.”

The Special Petroleum Tax was introduced by the Mahama-led administration at a time fuel prices had dropped on the world market which government needed to fill in the gaps.

According to Muntawakilu “it is reasonable for any government to know it is time to take off the special petroleum tax since the country is now making surpluses.”

His comment was in reaction to the recent rise in fuel prices which has triggered 2.76 percent increase.

As it stands now, the price of petrol and diesel is pegged at GH¢5.21 per litre, up from the previous price of GH¢5.07 per litre.

The increase vindicates the Institute of Energy Security (IES) who in its October pricing window review, predicted a marginal increase in fuel prices before year end.

The Institute indicated that the increment may occur as a result of a 5.7 percent rise in Brent crude oil, and a corresponding increment in the prices of Gasoline and Gasoil on the international market.

Meanwhile, the National Petroleum Authority (NPA), has explained that the latest increase in prices for fuel is as a result of a surge in the price of finished products on the international market.

“Almost all the OMCs that have moved the prices up are within the indicative price range. We observed some shocks on the international market. LPG price has gone up by about 2.21%, and petrol by about 2.94 %, and diesel has gone up by 6.37%. That is what we have seen on the international market. The imposition of sanctions on Iran by the United States has also impacted negatively on the prices on the international market,” according to the Executive Director of the NPA, Hassan Tampuli.

By: Emmanuel Yeboah Britwum