The Ministry of Energy says the reduction in the price of a litre of fuel is part of regular processes to have the cost of petroleum products reviewed from time to time.
It said the stakeholder consultative deliberations which led to the reduced margin is not borne out of the seeming intense pressure on the government to bring prices of fuel down following the implementation of the new levies imposed on fuel products.
Speaking on Eyewitness News, the Public Relations Officer of the Energy Ministry, Rodney Nkrumah-Boateng said reviewing fuel prices downwards is done on a regular basis.
“This is not forced. It is a question of simply reviewing the prices. As reviews are done all the time, it is possible for you to go back to the drawing board and see if something can be done even after the process has gone through its cycle. That is precisely what has been done, and it happens all the time. Whichever way you see it, a review has been done”, he explained.
The National Petroleum Authority (NPA) reduced the margin on the price of fuel by 8 pesewas per litre.
Following the implementation of the newly-reviewed taxes on fuel, the margin on prices of petroleum products went up by 17 pesewas per litre.
But the NPA, after a meeting with stakeholders in the industry on Tuesday, May 4, 2021, reduced the 17-pesewa margin to 9 pesewas.
The reviewed price is to take effect on Wednesday, May 5, 2021.
When asked whether the reduction is significant for consumers, Mr. Nkrumah-Boateng pointed out that it will only be fair if the review is welcomed.
“This is almost a 50 percent reduction. I think every pesewa counts. The important thing is that there is a reduction, and it will bring some relief to Ghanaians.”
The 2021 budget introduced a new 10 pesewas Sanitation and Pollution Levy as well as a 20 pesewa levy.
In effect, the government proposed a 5.7 percent increment in prices of petrol and diesel as part of new levies it is imposing on Ghanaians.
Until the recent increment, petrol and diesel which were both selling at an average price of GHS 4.7 per litre in December 2020, had risen to an average of GHS 5.74 as of mid-March 2021.
Currently, some Oil Marketing Companies (OMC) are displaying GHS6.13 per litre of fuel at the pumps.
Fuel prices in the country have consistently seen a steady increase since the beginning of the year, sparking fears that consumers may end the year paying an all-time high rate per litre.