Fuel prices are expected to increase even further as the National Petroleum Authority (NPA) restores the Price Stabilisation and Recovery levies.
The levies are a key part of what determines the pricing of petrol and diesel but were suspended last year by the government to cushion consumers from the constant increase in the price of petroleum products.
But from today, Tuesday, February 1, 2022, the NPA will bring back the levies.
According to the NPA, it has become necessary to reintroduce the levies to be able to continue subsidising Premix fuel for fisher-folks across the country.
READ ALSO: BoG maintains policy rate at 14.5%
Head of Pricing at the NPA, Abass Ibrahim Tasunti, there is no money in government coffers to subsidise Premix fuel.
“The three months period that it has been taken off, nothing has gone into the account and we’ve been using the balance we have in the account over this period to pay for this subsidy. As we speak, the account is dry so if we remove it forever or we continue zeroing the levy, it means that we will not have money. The continuous supply of premix oil and residual fuel will be threatened which we do not want to happen so unfortunately for the consumer, it [the levy] has to come back,” he said.
Already, the Institute for Energy Security (IES) has projected another bout of fuel price increases at the pumps in early February.
According to the energy think tank, the pending increases are a result of an upsurge in the prices of the commodities on the international market.
The National Petroleum Authority (NPA), in October 2021 approved the removal of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months as requested by President Akufo-Addo.
The PSRL is 16 pesewas per litre on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel and fourteen pesewas per kilogram (GHp14/Kg) on LPG.
The levy was to return earlier this month but the NPA two weeks ago extended the removal of the Price Stabilisation and Recovery Levies (PRSL) for an additional two weeks ending January 31.
Currently, some Oil Marketing Companies are already selling fuel beyond the GH¢ 7 per litre mark which means the reintroduction of the levy will send prices further above GH¢ 7 per litre.