Four civil society groups have proposed a cumulative GH¢1.65 reduction in levies and margins on petroleum products, following President Mahama’s call
Four civil society groups have proposed a cumulative GH¢1.65 reduction in levies and margins on petroleum products, following President Mahama’s call for the Finance and Energy Ministers to remove selected fuel levies to cushion consumers.
According to the four CSOs, the proposed cut should last two months rather than the four weeks proposed by the government.
In a joint statement issued on Tuesday, IMANI, the Chamber of Petroleum Consumers (COPEC), the Institute for Energy Securities (IES), and the Institute for Energy Policy Research (INSTEPR) outlined their position.
The groups stated that this recommendation would not overburden the country’s fiscal space, noting that the government is expected to receive a significant windfall from upstream crude production and exports within the period.
They further proposed a more comprehensive solution to the country’s perennial fuel price escalations by rationalising all existing taxes, levies, and margins, with the aim of permanently removing those that burden individuals and national resources.
Additionally, they proposed the creation of a Strategic Reserve Fund by revisiting some of the levies identified for review, whose revenues could be utilised at all times for the purchase and storage of fuel. This reserve could then be used to stabilise the domestic market during unforeseen disruptions.
They also called for the modernisation and retooling of the country’s refinery and storage capacity by committing adequate investments in the country’s main oil refinery (TOR) and the Bulk Oil Storage and Transportation Company (BOST). This, they noted, would position TOR and other refineries to better process the country’s crude liftings, while enabling BOST to expand its storage infrastructure.
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