The Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako, says the government can go beyond its current GH¢2-per-litre diesel intervention by reducing some levies and tariffs on petroleum products to cushion consumers against rising fuel prices.
Speaking on TV3’s New Day, Mr Adomako argued that the government has room to provide additional relief because Ghana could earn more than initially projected from higher international crude oil prices.
According to him, the government projected an average crude oil price of US$76.22 per barrel for the year, but prices have since risen above that projection.
“Government of Ghana also produces crude oil and sells it on the international market. We projected US$76.22, and now that the price has increased, when we go to sell, we are going to make extra revenue that was not anticipated from the beginning of the year,” he said.
He therefore argued that the additional revenue could be used to offset losses from further reductions in fuel taxes and levies.
“If government takes out some taxes and levies and loses some revenue, knowing very well that there is some extra revenue somewhere that can cover that particular hole, we are of the view that government can go further,” Mr Adomako stated.
He said the government’s current GH¢2-per-litre diesel intervention had already helped reduce the pressure on fuel prices, warning that diesel could otherwise have been selling for about GH¢19 or GH¢20 per litre.
“But for the two cedis that the President gave Ghanaian people, we may be selling diesel and all those at about 19 or 20 cedis,” he said.
Mr Adomako maintained that with increased revenue expected from higher crude oil prices, the government should consider further reducing levies and tariffs on petroleum products to provide more relief to consumers.
“Once we have some space from the revenue that is accruing to us based on the increase in crude oil prices, it doesn’t hurt much if government reduces more of the tariffs and levies on petroleum products,” he added.
