The government has directed the National Petroleum Authority to suspend the implementation of the Price Stabilization and Recovery Levy (PSRL) on price build-up on petroleum products.
This will freeze the implementation of the levy charged on every litre of petroleum products and Kilogram of LPG from Monday, April 1 to June 30 2024.
This was contained in a letter from the National Petroleum Authority to all the players in the oil marketing and distribution space in the country. This was based on the directive from the Finance Ministry working with the Energy Ministry.
Impact
The action could result in the Price of Petrol being reduced by 16 pesewas in its price build-up. Diesel by 14 pesewas and LPG also 14 pesewas per Kilogram . However, there have been productions that prices of petroleum products are expected to go up from April 1 2024. Therefore this action could slow down the expected margin of increase for prices of the various Petroleum. The letter also stated that this insulates consumers from paying for higher fuel prices at the pumps based on rising prices on the global market.
Details of the Levy
The Energy Sector Levies Act 2015 (Act 899) allows the National Petroleum Authority to stabilise petroleum product prices for consumers over a certain period.
It currently charges 16 pesewas per litre for petrol, fourteen pesewas per litre (GHp14/Lt) for diesel, and 14 Pesewas per kilogram (GHp14/Kg) for LPG.
In recent times, the government has used interventions to cushion consumers of petroleum products. Whenever prices rise to a certain level, they decide to put the application on hold. However, when prices drop to a certain level, levies are restored.
Source: myjoyonline
