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Press Release
NPP
January 06, 2016
NPP CALLS FOR URGENT AND IMMEDIATE
REVIEW OF THE PETROLEUM PRICE
The New Patriotic Party (NPP) urges the government to
immediately reverse or review the imposition of a 27% hike
on petroleum products which has seen the price of petrol
increase from ghc 12 to over ghc15 a gallon, effective
January 1st 2016. The 27% increase is completely
unjustified.
There are two main determinants of petrol prices: the cedi
exchange rate and the price of crude oil. The price of the
cedi exchange rate has been relatively stable, at Ghc3.85,
in the last few months. The price of crude oil HAS ACTUALLY
FALLEN STEEPLY, from $110 in mid 2014 to $37 today.
By operation of the automatic petrol price adjustment
formula, petrol should be selling at about ghc9 a gallon.
Indeed the trend all over the world, including in the rich
countries) has been drastic falls in petrol prices. It is
therefore totally baffling that in Ghana, the NDC government
has not seen it fit to reduce the price of petroleum
products to bring much needed relief to the Ghanaian
consumer, but has ACTUALLY increased the price of petrol by
a whopping 27%, from Ghc 12 a gallon to nearly ghc16 a
gallon.
In effect, the poor consumer does not get the well deserved
relief in petrol price, but is actually punished by the
government of NDC by imposition of higher prices for petrol.
Furthermore, over the last month or so, the NDC government
has imposed at once, a 60% increase in tariffs for
electricity, a 67% rise in water tariffs and a 27% rise in
petrol price, on the
long suffering Ghanaian.
All these unbearable increases have come on the back of only
a 10% provision for increment in workers' wages and
salaries.
The increases therefore show a callous, wicked, insensitive
and lazy government which quickly, time and again, resorts
to using state power to financially squeeze the poor
Ghanaian consumer. Apart from the poor Ghanaian having to
eke out to pay directly the 60%, 67% and 27% increases, the
poor taxpayer will still be confronted to eke out further to
pay increases in trotro fares, bus fares, school fees,
sachet water, kenkey, rent, and for food etc. Businesses are
going to suffer from increases in operating costs, losses in
profit and further limiting their ability to expand and
create jobs for the teeming unemployed youth.
It must be noted that the NDC government has removed all
subsidies on petrol prices by its operation of the automatic
petrol pricing formula. So when the prices of oil or the
dollar increase, the effect of petrol price increase has
been passed on without any cushion to the Ghanaian consumer.
But when the price of oil has fallen to its lowest level in
7 years , the NDC govt has not allowed the automatic
reduction in petrol price, as per the formula, but has
rather imposed new and increased taxes to rather raise the
price of petrol by this whooping 27%.
These taxes, imposed under a certificate of urgency, include
taxes on Ghanaians for a so called " legacy debt"( or Energy
Debt Recovery Levy), another Energy Fund Levy, a Price
Stabilisation and Recovery Levy, a National Electrification
Scheme Levy , dramatic increases in the Road Fund Levy and
the Public Lighting Levy !
The preponderance of these taxes and levies at this time, in
the face of the steep increases in water and electricity
tariffs, portray a very uncaring and wicked government,
whose main policy is to impose higher and new taxes on the
long suffering Ghanaian, even in the face of poor growth in
the economy. These government imposed hardships are
unfortunate.
The NPP urges the govt to revisit this issue, and review the
taxes urgently to relieve the poor Ghanaian. The suffering
of the people is too much!
...Signed...
Nana Akomea
(Communications Director
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