Energy Think Tank, Africa Centre for Energy Policy (ACEP), is demanding the Government of Ghana to immediately apply the balance of monies so far raised from the implementation of the Price Stabilisation and Recovery Levy (PSRL) to cushion petroleum consumers who are suffering from the rising cost of fuel at the pump.
According to ACEP, based on the consumption data of petroleum products between 2016 and the half-year of 2021, the PSRL is estimated to have cumulatively raised about GHS2.53 billion, out of which an average of 50 per cent is estimated as subsidies for premix fuel and Residual Fuel Oil (RFO).
ACEP said adjusting for 25 per cent non-collection rate or theft by some Oil Marketing Companies (OMCs), the PSRL is estimated to have cumulatively raised about GHS1.89 billion.
“Out of this amount, about GHS948 million is expected to have been cumulatively spent on subsidies, leaving about GHS948 million as the balance of the account,” ACEP said.
The Price Stabilization and Recovery Levy (PSRL) was established in 2015 under the Energy Sector Levies Act, 2015 (Act 899).
It would be recalled that last Monday, the Government of Ghana, through the petroleum downstream regulator, the National Petroleum Authority (NPA), announced the suspension of the Price Stabilisation and Recovery Levy for two months to cushion consumers.
In a statement reacting to the new development, ACEP said, “For policy credibility, the utilization of the accumulated balance is what is required to cushion consumers in this high oil price period.
“Simply zero-rating the PSRL for two months creates the assumption that the government does not intend to activate the price stabilization purpose of the PSRL, thus, raising the fundamental accountability question of what the government intends to use the estimated balance of GHS948 million in the PSRL account for.”
Clink on the link below for the full statement
ACEP Presser on the Zero Price Stabilization and Recovery Levy
Source: https://energynewsafrica.com
