Dr Mohammed Amin Adam, Ranking Member on Parliament's Finance Committee and former Finance Minister, has called on the government to review taxes and levies on petroleum products. He argues that the current temporary relief on diesel prices has not sufficiently reduced the burden on consumers. In a Facebook post on September 27, Dr Amin Adam noted that diesel prices remain high, ranging between GH¢17.55 and GH¢18.99, despite the government's GH¢2 intervention.
Dr Amin Adam stated that the GH¢2 reduction in diesel prices has been partly offset by other measures affecting petroleum product prices. A GH¢1-per-litre levy imposed by the government on fuel has partly neutralized the relief. Additionally, recent increases in levies on fuel oil have imposed extra costs on industries and power producers. According to Dr Amin Adam, the GH¢2 reduction has already been partly neutralized by the GH¢1 per liter levy.
The continuing pressure on fuel prices is also attributed to the depreciation of the cedi, which has declined by 12% year-to-date. Dr Amin Adam explained that exchange-rate movements directly affect the domestic cost of imported petroleum products. Ghana purchases petroleum products on the international market, making it exposed to changes in international prices and the value of the cedi.
Dr Amin Adam called for a comprehensive intervention by the government, stating that the temporary relief is not enough. He urged the government to review petroleum taxes, particularly recent increases in fuel-related taxes. Dr Amin Adam suggested suspending or abolishing these taxes to provide further relief to consumers, citing similar tax measures undertaken by the previous NPP administration.
The government's temporary relief measure was aimed at reducing the burden on consumers. However, Dr Amin Adam's comments suggest that more needs to be done to address the issue. The high fuel prices have implications for industries and power producers, which may lead to increased costs and potential price hikes for goods and services.
Dr Amin Adam's call for a review of fuel taxes is not the first time he has spoken on the issue. He has previously expressed concerns about the impact of high fuel prices on the economy. As the government considers Dr Amin Adam's suggestions, it will be crucial to balance the need for relief with the need to maintain revenue streams.
The government will need to weigh Dr Amin Adam's proposals and consider the potential impact on the economy. A comprehensive review of fuel taxes and levies may provide a more sustainable solution to the high fuel prices. This could involve engaging with various stakeholders, including industry players and consumer groups, to ensure that any new measures are effective and equitable.
Key points
- Dr Mohammed Amin Adam calls for a review of fuel taxes as diesel prices remain high despite temporary relief measures.
- The GH¢2 reduction in diesel prices has been partly offset by a GH¢1-per-litre levy and increases in levies on fuel oil.
- The depreciation of the cedi has contributed to the high fuel prices, with a 12% year-to-date decline.
