NPA reacts to calls to scrap taxes on fuel

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Communications Manager at the National Petroleum Authority, Mohammed Abdul Kudus, has explained that scrapping or reducing levies in the price build-up of fuel could compromise the quality sold at the pumps.

In his response to the calls by some 16 driver unions for the scrapping of taxes on fuel, Mr Kudus clarified that the essence of price marking is to ensure that the quality of fuel is maintained.

Speaking to Israel Laryea on the AM Show on JoyNews, he underscored the importance of the levies on price build-up of fuel.

“There is a call for scrapping or removal of some levies as part of the price build-up and I just heard that the fuel marking has been brought up as a specific issue. The fuel marking is supposed to take care of possible adulteration to guarantee and ensure that the quality as it is from the point of the depot that it was taken from, to the pump that it is to be discharged, so that you and I can buy, it is that particular component of the price build-up that guarantees the quality,” he said.

Although he admitted to the relief the removal of levies will bring to Ghanaians, Mr Kudus argued that the consequences will be dire.

“If it is scrapped, removed or taken out, what it means is that there might be a certain marginal relief on the prices that we pay for the product but the consequences we might not be averting our minds to, is the possible compromise on the quality of the product that you and I will have, the effect it would have on the engine,” he explained.

But General Secretary of the Ghana Private Road Transport Union (GPRTU), Godfred Abulbire, reiterated the need to remove taxes like the energy debt recovery levy on fuel.

“If you look at the first levy that we mentioned, the energy debt recovery levy…as at now per their own publication, the energy debt has been cleared so perhaps if they are not scrapping that particular levy, it should be reduced. Government has seen that it is justifiable to remove the price stabilisation levy and they only acted by suspending it for two months and we think if that one is also removed, per the figure on it, it may not be too much but it justifies its removal,” he said.

Some 16 driver unions are demanding that the government scraps some taxes on petroleum products.

The government has announced the suspension of the Price Recovery and Stabilisation Levy (PRSL) for the next two months to cushion fuel consumers.

However, the 16 driver unions say they cannot put up with the recent increase in fuel prices, hence the suspension of the PRSL is inadequate.

They have, therefore, threatened to withdraw their services on Thursday at 3:00 pm should their demands go unheeded.

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