The Institute of Energy (IES) has urged the Energy Ministry to further reduce the prices of fuel prices as they believe it is possible.
Government increased fuel margins by 17 pesewas as part of the COVID-19 levy which affected fuel prices. After constant complaints from the populace and advocacy groups, the government through the National Petroleum Authority (NPA) announced a reduction in fuel margins from 17 pesewas per litre to 9 pesewas.
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According to the Director of Research and Policy at the IES, Derrick Xatse, if the government is increasing taxes by 30 pesewas and decides to reduce it by 8 pesewas, “then that is really insignificant”.
He believes if the government was able to reduce the tax by 8 pesewas, then there is more room for improvement. “Fuel prices can be reduced beyond 8 pesewas. I think if we mount more pressure on the government, the prices of fuel can be reduced further”, he insisted.
Derrick shared that 11 months back, fuel prices were increased by 3 percent and that affected the country “but we saw no pay rise and that is the same situation now. We believe the 8 pesewas reduction is not enough and the government can do more about it. We think there is more room for reasoning right from price build up, negotiations and the works”.
On his authority, if the 8 pesewas is taken off the fuel margins, a litre of fuel will still be above the 5 cedis margin. He insists the increase in fuel prices will have a ripple effect on the Ghanaian economy and that is a problem.
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“The ordinary person will be the one suffering from such indirect taxes that comes with increment in fuel prices. The indirect tax is retrogressive to he ordinary Ghanaian and need to change. Ghanaians are already suffering and must not be overburdened with this inelastic tax”, he told Samuel Eshun on the Happy Morning Show aired on e.TV Ghana and Happy FM.
The IES which had earlier on in the year predicted the rise in fuel prices because of the introduction of new taxes, appealed to government to see to it that fuel prices were not increased.
However the IES claims it was not invited by the Energy Ministry to a consultation meeting held yesterday May, 4, 2020 for the reduction of fuel prices but asserts it will keep standing by the ordinary person and fight for more reduction in fuel margins.
By: Joel Sanco
