Ghana: Oil Marketing Companies Deny Charging New Levies On Fuel

The Association of Oil Marketing Companies (AOMCs) in the Republic of Ghana has denied reports suggesting that they have started charging the new sanitation and pollution levy on petrol and diesel, hence the recent hike in fuel prices.

According to the Association, the recent upward adjustment in petrol and diesel prices are as a result of the rising crude oil prices on the world market and market forces and not the addition of the new levies being proposed by the government.

A litre of petrol is currently being sold at GHS5.4

In a statement signed by Kwaku Agyemang-Duah, who is the Industry Coordinator and CEO of the Association and copied to energynewsafrica.com, the Association said they would start charging the new levies when Parliament approves the 2021 Budget and Economic statement of the government.

“The Association of Oil Marketing Companies (AOMC) would like to state unequivocally that, the current fuel prices on the market are not a reaction to the proposed taxes/levies, but rather the existing world crude oil prices and market forces.

“Subsequently, the impact of the proposed taxes/levies would only take effect when parliament has approved the 2021 Budget and assented by the President of the Republic of Ghana and duly gazetted,” the statement indicated.

The association served notice that it would react to the proposed new levies at the appropriate time.

Below is the full statement by the Association of Oil Marketing Companies

We have monitored on the media landscape, the enthusiastic reaction towards a purported increase in petroleum prices at the pump, following the proposed review on taxes/levies, as presented to parliament on Friday, 12th March 2021.

The Association of Oil Marketing Companies (AOMC) would like to state unequivocally that, the current fuel prices on the market are not a reaction to the proposed taxes/levies, but rather the existing world crude oil prices and market forces.

Subsequently, the impact of the proposed taxes/levies would only take effect when parliament has approved the 2021 budget, assented by the President of the Republic of Ghana and duly gazetted.

At the appropriate time, OMCs will react accordingly, taking into cognizance the effective cost of operations.

Nevertheless, the AOMC is grateful to Government under the COVID-19 Support (Section 117), for the introduction of extension of the waiver of interest and penalties, as incentive for early payment of accumulated tax arrears.

However, we would like to propose a review on the condition that, beneficiaries must fulfill the first quarter tax obligation for the year 2021, and also consider the increment of the number of days for payment of petroleum taxes from 21 + 4 days to 40 days, to ensure effective collection of all adduced taxes.

Further, we would like to assure the general public that OMCs/LPGMCs will continue to pursue and uphold consumers’ interests and will always be at their service.

Source:www.energynewsafrica.com