Consumers of petrol and diesel in the Republic of Ghana are expected to pay more for the commodity in the coming weeks.
This is because the Government of Ghana has reviewed the Energy Sector Levies Act (ESLA) and introduced two new taxes on the commodity which is expected to see a 5.7 percent jump in the price of petrol and diesel.
This comes at a time when consumers are lamenting over the consistent increases in prices of petrol and diesel.
Presenting the West African nation’s 2021 Budget and Economic Policies of the Government of Ghana in Parliament on Friday, Osei-Kyei Mensah Bonsu, who is Minister for Parliamentary Affairs, said: “Government is proposing a Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA). Energy Sector Recovery Levy (Delta Fund), Mr. Speaker, it would be recalled that when crude oil prices increased substantially between 2017 and 2018, the government abolished excise taxes and reduced the special petroleum tax from 17.5 percent to 13 percent to mitigate the impact on domestic petroleum prices.”
Kyei- Mensah-Bonsu said: “I should note that on the basis of existing world crude oil prices, the implementation of the two proposed levies for sanitation and pollution, as well as to pay for excess capacity charges, would result in a 5.7 percent increase in petroleum prices at the pump.”
He said the COVID-19 pandemic has caused additional health spending that far exceeds the government’s annual budget for health.
Kyei-Mensah-Bonsu said the pandemic has brought unprecedented challenges to the country and that there is the need to provide the requisite resources to address these challenges and fund some major projects of the government.
“Mr. Speaker, it has become very necessary for the government to consider a review of the energy sector levies. The Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA is hereby submitted to this House for approval,” he said.
Source: wwww.energynewsafrica.com