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Fuel prices
drop by 3 -10%
Masahudu Ankiilu Kunateh, Ghanadot
Accra, March 9, Ghanadot - Prices of petroleum products in
Ghana are expected to be reduced effective Monday, March 9,
2009 in line with the tax reductions proposed by government
in the 2009 budget.
Sources at the National Petroleum Authority (NPA), the
regulator of the petroleum industry indicate that the
reductions would ensure a drop in the litre price of petrol
from GHP 82 to GHp78 and diesel from about GHp89 to GHp85.
A gallon of petrol will sell at GH¢3.51 from GH¢3.69,
representing a drop of 5% and diesel will sell at GH¢3.89
from GH¢4.00 representing a 2.8% decrease.. Liquefied
Petroleum Gas (LPG) is also expected to go down by about
10%.
The NPA intimates that Oil Marketing Companies (OMCs) in the
country will be admonished on the new prices on Monday.
Instructively, Ghana ’s Parliament on Thursday passed into
law the Customs and Excise Amendment Bill which seeks to
reduce petroleum taxes and related levies.
The passage of the bill followed closely on the heels of the
reading of the budget statement for the 2009 fiscal year
which promised significant tax cuts on petroleum products.
The President of Ghana, Professor John Evans Atta Mills is
said to have already given assent to the law.
President Mills at his maiden State of the Nation Address to
Parliament in February said the proposed tax cuts are in
line with the ruling National Democratic Congress’ manifesto
pledge to reduce the cost of fuel to alleviate the financial
burden on Ghanaians.
The proposed drops in fuel prices will be the first after
prices were heavily reduced by the Kufuor administration in
December 2008 following drops in international market prices
of crude.
However, the Minister of Finance and Economic Planning Dr.
Kwabena Duffour has warned that the cuts will result in a
loss of close to $50million to the economy.
While the Majority in Parliament has hailed the reductions
as good news, the Minority says it will be a drain on the
national coffers as the government needs more funds to
undertake existing and new development projects across
length and breadth of the country.
Ghanadot
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