Petroleum consumers in Ghana are expected to pay more for fuel following the decision by the National Petroleum Authority (NPA) to suspend the Price Stabilization and Recovery Levy on petroleum products.
In a directive dated April 3, 2024, and distributed to various stakeholders within the oil marketing and distribution sector, the NPA instructed the application of additional charges: 16 pesewas per litre for Petrol, 14 pesewas per litre for Diesel, and 14 pesewas for every kilogram of Liquefied Petroleum Gas (LPG).
Consequently, the state-owned Oil Marketing Company, GOIL, has adjusted its prices, with petrol and diesel now retailing at GH¢14.15 per litre and GH¢14.74 per litre, respectively. GOIL implemented these adjustments effective April 4, 2024.
This recent spike in fuel prices marks the highest increase since February 2023, when a litre of fuel sold for GH¢15.40 and GH¢15.50 for diesel.
The Executive Director of the Institute for Energy Security (IES), Nana Amoasi VII, is anticipating a twofold surge in fuel prices during April’s upcoming petroleum pricing window.
During an interview on Citi Breakfast Show on Citi FM, Nana Amoasi VII criticized the suspension, asserting that it was not thoroughly deliberated before being implemented.
He noted that the levy had failed to achieve its intended purpose of stabilizing fuel prices, citing historical instances where prices soared to GH¢18 per litre in 2022.
Nana Amoasi VII warned of an impending fuel price surge, indicating that prices could rise to approximately GH¢14.05 per litre, potentially resulting in a double increase.
“The suspension of the levy was not well-thought through because it was clear in the statement that it was intended to relieve consumers of intending price hikes which are necessitated by happenings on the world market and also our own forex market. Then the OMCs increase fuel prices in response to the domestic foreign market and the international fuel market.
“Unfortunately, a day or two, the NPA comes to say we are reversing the suspension of that levy which is meant to cushion consumers and this time around, the NPA fails to give the reasons for the suspension.
“We have not seen any impact of this levy on fuel prices over the years because it has not been able to stabilise prices and prices shot up as high as GH¢18 per litre somewhere in 2022 and we are seeing the same thing now.”
“What is going to happen is that fuel is going to increase again. Few have done it already and others are yet to do it and prices will roughly rise GH¢14.05 and so fuel prices will soon see a double increase,” Nana Amoasi VII added.