Ghana: COPEC Petitions Parliament To Reject Hikes In Petroleum Sector Levies

A consumer advocacy group in the Republic of Ghana, Chamber of Petroleum Consumers (COPEC) has petitioned Ghana’s Parliament to consider by rejecting the proposed increases in petroleum sector levies announced by the Finance Minister in Parliament last Monday.

The chamber urged the legislative body to do so in the interest of consumers in the West African country.

“We humbly indulge your honest house to consider the plight of the ordinary Ghanaian and dismiss the implementation of tax increment on petroleum products, which will only pose huge financial burden on the citizenry of the Republic of Ghana,” a petition signed by executive secretary of COPEC, Duncan Amoah, said.

Presenting a mid-year budget review statement in Parliament on Monday, July 29, this year, Finance Minister Ken Ofori-Atta said, “Government proposes to increase the Energy Sector Levies by GHp20 per litre for petrol and diesel and GHp8 per kg for LPG, so as to increase the inflows to enable government issue additional bonds to pay down our energy sector debt obligations. 

“Based on current indicative prices for petrol and diesel, this translates to GHp90 per gallon.”

However, COPEC, in its petition, kicked against the proposed levies.

“As a country committed to curbing the menace of climate change, COPEC is of the opinion that when the LPG price increases, people will be demotivated in attempt to move from non-environmentally friendly fuels to LPG, hence derailing the aim of government’s LPG penetration target.

“COPEC believes that government can source for alternative means of revenue generation including employing prudent measures to check perennial leakages in the energy sector, where the state loses over GH¢1.6 billion yearly to fuel smuggling, as well as revamping and equipping State Owned Enterprises like TOR to be more productive and profitable.”