Pulse.com.gh logo
Go


Enery Levy Gov't to rake in GHC3.2 billion from levies --ACEP

Consumption of the three commodities in 2015 amounted to 1.5billion litres of petrol, 1.9billion litres of diesel, and 272.8million kilogrammes of LPG.

  • Published: , Refreshed:
24/7 Live - Subscribe to the Pulse Newsletter!

The Africa Center for Energy Policy has estimated that the new Energy Sector  Levy imposed by government will generate  incremental revenue of GHS3.2 billion annually.

Addressing a news conference yesterday in Accra, head of the center, Dr Mohammed Amin Adam said it estimation is based on volumes of petroleum consumption (Petrol, Diesel and LPG) in 2015.

Consumption of the three commodities in 2015 amounted to 1.5billion litres of petrol, 1.9billion litres of diesel, and 272.8million kilogrammes of LPG.

The passage of the Energy Sector Levy, 2015 by Parliament last December, assented to by the president resulted in a 27% increase in price of petrol at the pump.

The Minister of Finance told Parliament that the effect of the levies would amount to a 5% increase in the price of petrol, 2.9% in the price of diesel and 1.74% in LPG price.

However, this is not the case as ex-pump price has increased by between 22% and 28%.

"Our analysis on the contrary shows that the effects of the levies on ex-pump prices are much greater and punitive. We estimate that the levies have led to increase in the ex-pump price of petrol per litre by 33%, 40% on diesel per litre and 22% on LPG per kg," Dr. Adam said.

Labour Minister, Haruna Iddrisu has said the increment is “difficult but necessary decisions to stabilise the economy and to fix the energy crisis and prevent it from relapsing into a deeper crisis."

Dr. Adam also said the processes leading to the passage of the new Energy Sector Levy lacked total transparancy.

He said: "The Energy Sector Levies lasted only three days in parliament without providing for public consultations in spite of the enormous burden the Act seeks to put on citizens. Such actions are likely to affect public trust in their governments, which could undermine government’s ability to implement good policies in future."

"It is also important to note", Dr. Adam added, "that over-reliance on petroleum taxes and levies could adversely affect the economy in many ways – inflation, growth deceleration, social development challenges, etc."

 

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 New Appointment Nana Addo appoints Mahama as Lands Commission bossbullet
2 Ghana Politics Akufo-Addo fires Lands Commission bossbullet
3 Mobile Money MTN freezes account of Ponzi scheme over GH¢11m defaultbullet
4 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
5 Mahama boys prevented me from meeting him – Fibre Optics Inventorbullet
6 Salaries In 2018 Here are the dates public workers will be...bullet
7 Government Interventions UN expert says 1D1F, $1m Per...bullet
8 Banking In Ghana Invest in more risky ventures – Nana Addo...bullet
9 Ports And Harbour Issues GPHA staff apologises to Mac Manubullet
10 Free Decoder Promo StarTimes launches most affordable...bullet

Top Videos

1 New Discovery Ghana discovers new mineral, lithium in commercial quantitiesbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Support Finance minister buys Kantanka carbullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
7 Money Alert Meet Africa's richest womanbullet
8 Entrepreneurship Failure- How To Deal With It | StartUpSchoolbullet
9 Video We are determined to move Ghana beyond aid - Bawumiabullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet

Business