The National Petroleum Authority (NPA) has announced the removal of the Price Stabilisation and Recovery Levies on petrol, diesel and LPG for a period of two months.
The move comes after the President gave approval for zero Price Stabilisation and Recovery Levies following the advice of the NPA to seek government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.
According to the NPA, the sharp rising prices of crude oil and refined petroleum products on the World market has made it necessary to zero these levies to minimise the effect of rising prices of petroleum products on the world market on consumers in Ghana.
“At this time it is important that the PSRL which is currently sixteen pesewas per liter (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG are zeroed to cushion consumers,” a statement from the NPA said on Monday.
Prices of crude oil and refined petroleum products have seen sharp increases on the world market due to a rise in demand of oil globally without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.
Because pricing of petroleum products in Ghana is deregulated, changes in prices of petroleum products on the world market have a direct impact on prices at the pumps.
“The outlook of prices on the global market shows an upward trend and therefore there was the need to seek government’s intervention to lower the levies to cushion consumers from feeling the full impact of these rising prices,” the statement added.
The purpose of the Price Stabilisation and Recovery Levy (PSRL) is to stabilise prices for consumers and pay for the subsidies on Premix Fuel and Residual Fuel Oil (RFO).
Meanwhile, the NPA indicated that it will work with the Ministries of Energy and Finance to quicken the legislative processes to give immediate effect to this directive by the President.