The National Petroleum Authority (NPA) has made a decision that will impact petroleum consumers in Ghana, as they are likely to face higher fuel prices.
The NPA has suspended the Price Stabilization and Recovery Levy on petroleum products, according to a directive issued on April 3, 2024. This directive, distributed to various stakeholders in the oil marketing and distribution sector, mandates 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).
As a result, GOIL, the state-owned Oil Marketing Company, has adjusted its prices. Petrol and diesel are now retailing at GH¢14.15 per litre and GH¢14.74 per litre, respectively, effective April 4, 2024. This recent increase in fuel prices represents the highest spike 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 foreseeing a significant rise in fuel prices during the upcoming petroleum pricing window in April.
During an interview on the Citi Breakfast Show on Citi FM, Nana Amoasi VII criticized the decision to suspend the levy, arguing that it was implemented without sufficient deliberation.
He pointed out that the levy had not effectively achieved its goal of stabilizing fuel prices, citing instances in 2022 when prices soared to GH¢18 per litre.
Nana Amoasi VII cautioned about an imminent surge in fuel prices, suggesting that prices could potentially increase to around GH¢14.05 per litre, potentially resulting in a twofold increase.
He said:
“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 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,”.
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