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FG halts price stabilization, recovery levy on petroleum products

Fuel Pumps

The government has instructed the National Petroleum Authority (NPA) to halt the enforcement of the Price Stabilization and Recovery Levy (PSRL) on the price build-up of petroleum products. This suspension will be effective from April 1 to June 30, 2024.

In a directive issued by the Ministry of Finance in collaboration with the Ministry of Energy, all stakeholders in the oil marketing and distribution sector were notified of this decision through a letter from the NP.

This move is expected to temporarily freeze the imposition of the levy, which is levied on every liter of petroleum product and kilogram of LPG. Consequently, consumers may witness a potential reduction in the prices of petrol by 16 pesewas, diesel by 14 pesewas, and LPG by 14 pesewas per kilogram in their price build-up.

The decision comes amidst projections of an impending increase in petroleum product prices from April 1, 2024, which could have resulted in higher costs for consumers at the pumps by suspending the PSRL implementation, the government aims to shield consumers from bearing the brunt of elevated global market prices.

Enacted under the Energy Sector Levies Act 2015 (Act 899), the PSRL empowers the NPA to stabilize petroleum prices for consumers over specific periods. Presently, the levy stands at 16 pesewas per liter for petrol, 14 pesewas per liter for diesel, and 14 pesewas per kilogram for LPG.

This decision reflects the government’s proactive approach to mitigating the impact of fluctuating petroleum prices on consumers.

In the past, similar interventions have been implemented to provide relief to consumers during periods of price volatility.

While the suspension of the PSRL offers temporary respite for consumers, it remains subject to periodic review based on prevailing market conditions.

SOURCE: pulse.com.gh

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