The implementation of some of the new tax policies introduced in the 2021 budget statement from 1st May is likely to contribute to fuel prices rising to GHS6 per litre in the near future.
That’s according to the Chamber of Petroleum Consumers (COPEC).
Of the new taxes that will be implemented from the beginning of next month, the ones expected to impact fuel prices are the Energy Sector Recovery Levy and the Sanitation and Pollution Levy.
The amended Energy Sector Levy will lead to the imposition of GHS20 pesewas per litre of petrol and diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG).
There will also be an imposition of a Sanitation and Pollution Levy of GH¢10 pesewas per litre of petrol and diesel respectively.
Speaking to Citi Business News on the new taxes, Duncan Amoah, the Executive Secretary at COPEC bemoaned the rising tax component in the price build-up of fuel and said Ghanaians are going to be further burdened going forward.
“Ghanaians have had cause to complain about the over 18 percentage point increase in fuel prices since January this year. The expectation would have been that the budget will find innovative ways of reducing the taxes. On the contrary, we are rather increasing taxes on petroleum. The consequence is that we are going to lose a lot of jobs within a struggling economy because you are increasing baseline. You’re going to increase the cost of living for people who don’t have jobs as they still have to move around.”
“I would not be surprised if GPRTU and the other transport operators add on to their prices. What it means is that you are increasing everything for everyone and for the first time in a long time, fuel may be approaching GHS6 per litre in no time. For the first time in long while, for every litre of fuel you purchase you could be paying in excess of 50% in taxes,” he added.
