The National Democratic Congress (NDC) has demanded that the Akufo-Addo government scrap at least four items which went into the latest 7% increment in the prices of fuel.
At a press conference, the NDC says that the items are unnecessary addendums that government can take off so that the burden that the latest increase in fuel prices has brought upon Ghanaians can be relieved.
The main opposition party wants the government to scrap levies such as the Special Petroleum Tax (SPT) of 46 pesewas on a liter of diesel and petrol and the sanitation levy that it described as needless.
The other variables include the introduction of 20 pesewas Energy Sector Levy on every liter of diesel and petrol; the increase of 18 pesewas in ESLA per Kilogram of LPG; and the introduction of a 1% COVID levy on NHIL & VAT.
These, coupled with the free-fall of the Ghana Cedi which has been are the major factors responsible for the persistent and steep increase in the prices of fuel products.
“It will be recalled that the SPT was introduced by the erstwhile NDC/Mahama administration sometime in 2016 when crude oil export price fell far below government’s budgetary projections. The objective was to shore up government’s revenue for development purposes. But given the fact that crude oil export price has increased from below $40 to above $80 per barrel currently, far above the government’s budgetary projection of $54.75 per barrel, it is untenable for government to still maintain the SPT on the price of petroleum products now, and same should be scrapped immediately,” the NDC said.
“This is particularly so, when government’s revenue from the oil sector for the second quarter of this year 2021, went up by almost 60%, equivalent to US$89.1 million, as compared to oil revenue for the same period in the previous year.”
The party also said that “In the same vein, we call on the government to scrap the newly introduced taxes on fuel products such as the Energy Sector Levies of 20 pesewas on a liter of diesel and petrol.
The party’s statement had been read by National Communications Officer, Sammy Gyamfi.
It comes in response to the Akufo-Addo government’s announcement of yet another increment in fuel prices.
On Sunday, the price of diesel and petrol was increased by 7%.
“This is the ninth (9th) consecutive time in the year 2021 alone, that the prices of petroleum products have gone up. This has increased the price per gallon of diesel and petrol from about GHc21.00 as of January this year, to about GHc31.00 currently,” the NDC notes.
According to the NDC, the cascading effect of these draconian tax measures, have among other things, led to an escalation in the prices of fuel products, transport fares, building materials, food products and other commodities on the market, without a commensurate increase in incomes, thereby making the cost of living unbearable for the vast majority of Ghanaians.
It recalled that a gallon of petrol and diesel was sold at about GHc16 in December 2016 when the NDC/Mahama administration was leaving office.
The NPP lambasted and berated President Mahama for this and promised to scrap some taxes on Petroleum products, particularly the Energy Sector Levies and the Special Petroleum Tax to significantly reduce the prices of fuel.