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Taxes on fuel now ‘basically nothing’

A member of the Mines and Energy Committee of Parliament, K.T. Hammond, has suggested that calls for the removal of some petroleum taxes to cushion consumers are no longer necessary.

Speaking to journalists in Parliament, Mr. Hammond, noted that the petroleum taxes are insignificant to warrant any removal.

“I remember sometime back when we were working these things and the percentage was close to over 40 and 50 percent… I was calling for reduction,” he said.

But now, he said, the taxes amounted to “basically nothing.”

Calls for the removal of taxes on fuel have died down in 2022 because of the extreme rises in the price of fuel products.

Observers have now narrowed in on calls for structural changes to address fuel price increases.

The Energy Fund Levy, the Sanitation and Pollution Levy, Price Stabilization and Recovery Levy, Energy Sector Levy, Special Petroleum Tax, Road Fund Levy, Energy Debt Recovery Levy, add up to about GH¢2.

This week, the price of diesel has shot up to over GH¢23 per litre while petrol is selling at almost GH¢18 per litre.

The Minority in Parliament on Wednesday urged the government to use part of its revenue accrued from oil resources to support consumers, considering the economic situation.

The Institute for Energy Security also reiterated the need for the government to revive the Tema Oil Refinery.

 

 

 

 

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