Scrapping of PSRL stalls as fuel prices rise to GH¢6.80 per litre

The much-anticipated removal of the Price Stabilisation and Recovering levy of 16 pesewas in the price build-up of fuel at the pumps is yet to take effect even as the second pricing window commences.

This is because Parliament is yet to give the National Petroleum Authority (NPA) the approval needed to scrap the levy.

While many were expecting the scrapping of the levy to take effect in the second window of October which started on October 16, another round of increases at the pumps this past weekend has pushed a litre of petrol and diesel to GH¢6.80 at some pumps.

The NPA on October 11, 2021, disclosed that President Akufo-Addo had approved the removal of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months.

The authority added that the approval followed its advice to the Energy Minister for the government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.

Speaking to Citi Business News on the matter, Head of Communication of the NPA, Mohammed Abdul-Kudus noted that Parliament “has not given the NPA the all-clear to remove the levy hence the increases we are seeing at some filling stations.”

“It would have to take Parliament to give us the clearance to now remove it from the price build-up. Because Parliament has not been able to give us the all-clear, and since the second window is supposed to ensue from October 16, regrettably the recent increases at the pumps by some of the OMC’s are inclusive of the levy. The levy will only be excluded after Parliament has given us the all-clear,” he said.

Brent Crude Oil, a key determinant in the price of fuel, ended September selling at around 77 dollars a barrel, settled at a three-year high above $85 a barrel on Friday, October 15, 2021.

According to a recent press release from the Association of Oil Marketing Companies (AOMC), the significant rise in the price of crude oil among other factors in the first window of October would lead to a litre of petrol and diesel selling at between GH¢ 6.88 to GH¢ 7.11 and GH¢ 6.82 to GH¢ 7.05 respectively in the second window, inclusive of the current Price Stabilisation and Recovery Levy.

Without the levy, the AOMC expects a litre of petrol and diesel to sell at between GH¢6.72 to GH¢6.95 and GH¢6.68 to GH¢6.91 respectively in the second window. Checks by Citi Business News at the pumps show that some of the Oil Marketing Companies like Total have increased a litre of petrol and diesel from GH¢ 6.52 to GH¢ 6.80.

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