Parliaments new taxes imposed on petroleum products has pushed oil prices at the pump to increase by as high as 28 percent.
The Bill which takes will immediately impose more taxes on petroleum products which will see the Road Fund levy move from GHC0.07 per litre to 0.40 per litre.
The Bill which was introduced to the house on Monday, 21st December 2015, will also imposes a tax of GHC0.05 per litre on diesel and LPG as PIS levy; Ȼ0.05 on petrol as PSM; Ȼ0.05 on petrol as recovery margin, Ȼ40.05 on petrol, diesel and Ȼ0.23/kg on LPG as forex under recovery and UPPF at Ȼ0.09 per litre.
According to the Finance Minister, the urgent bill is to restructure, re- nationalize and consolidate energy sector levies to promote the prudent and efficient utilization of proceeds derived from the levies to facilitate sustainable long-term investments in the energy sector.
It was introduced in the House Monday, December 21 by the Finance Minister and passed after two days.
If government had not introduced the recent levy, diesel would have rather gone down by 10 percent. However, as things stand now, though international oil prices have falling to $35 a barrel, fuel prices have gone up by as high as 28 percent a barrel.
Petrol would have been reduced by some 5.5 percent per liter at the pumps but the levy has triggered an increase by least 27 percent percent.
LPG should witness about 18 percent jump in price per kilogram.
According to importers and marketers of petroleum products, decrease in prices of crude oil and petroleum products on the world market was not enough to offset the impact of the recently introduced Energy Sector Levy Act.