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."