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Fuel hikes: Scrap energy levies – CPC

The General Secretary for Chamber of Petrol Consumers, Duncan Amoah has called for a reduction or scrapping of energy sector levies as fuel prices go up by 4% at some filling stations Monday May 2.

The increment by the Oil Marketing Companies (OMCs) is part of a two-week review period following full deregulation of the petroleum downstream sector and Mr Amoah fears the prices could see a further increase in the next two weeks.

Currently, Goil and Shell have increased by 4 per cent and further checks at other OMCs suggest that prices could go up by more than 4 percent.

The main reason for the increment is due to increments in global petroleum prices, which have hit $46 per barrel this week.

According to Mr Amoah, there is a 17.5% Special Petroleum Tax variant figure on products which could translate to higher figures in actual price, thereby driving the price of purchased products.

He is, therefore, advising government to cushion consumers by removing or reducing the Special Petroleum Tax as well as some of the components of the Energy Sector Levy for consumers not to pay a huge price on the fuel increments.

He told ClassFMonline.com on Tuesday May 2 that: “If government does not look at the taxes the prices will go up again in the next two weeks.”

He further argued that since the increment in the world prices is already significant, “we are calling on government to immediately review downward the 17.5 per cent or take it off completely and then some of the taxes it introduced in the 2015 Energy Sector Levy Bill must also be scrapped or the levels reviewed because the reasons [for] which government introduced them, which is to pay [the] revenue shortfall from petroleum exports, may not hold today”.

He explained that world market prices for oil were going up and the country was likely to get more fuel from its Jubilee fields therefore the proposed recommendations must be considered in order to stabilise prices for consumers.

Source: ClassFMonline.com

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