Energy Minister, John Peter Amewu says Ghanaians would have been paying about GHS5.50 per litre for fuel had the Akufo-Addo government not intervened to mitigate the price hike. We have managed the situation better than the John Mahama-led administration would have done, he added.
Amewu told journalists Thursday at a press conference, that the New Patriotic Party (NPP) since assuming power has reduced the Special Petroleum Tax (SPT) twice.
The price of fuel hit the GHS5-plus mark on Monday, 17 September 2018, a prediction the Institute of Energy Security (IES) had made earlier.
Mr Amewu’s explanation follows agitation among some Ghanaians about the rising price of fuel, which has seen some driver unions threaten to increase transport fares.
“Ladies and gentlemen, government has used tax interventions to mitigate the impact of domestic petroleum price increases,” Mr Amewu said.
He enumerated the measures implemented by government since March 2017 to August 2018 as follows:
1. Removal of excise duty on the 16th March 2017.
2. Reduction of the Special Petroleum Tax rate from 17.5% to 15 % on 16 March 2017.
3. Reduction of the Special Petroleum Tax rate from 15% to 13 % on 16th February 2018.
4. Conversion of the Special Petroleum Tax from Ad valorem to Special Tax on 16th February 2018
5. Reduction of the Price Stabilisation and Recovery Levies (PSRL) from 1st December 2017; Currently the PSRL has been reduced from GHP12/Lt to zero for petrol, GHP 10/Lt to zero for diesel and GHP 10/kg to GHP 3/kg for LPG.
The decision to totally scrap the tax would be arrived at after review talks with the Finance Minister are finalised, Amewu added.
As the Minority in Parliament laces its boots to begin a nationwide tour to push for a reduction in fuel prices, Energy Minister, John Peter Amewu maintains that the government has managed the situation better than the John Mahama-led administration would have done.
Mr Amewu told journalists Thursday, that the New Patriotic Party (NPP) since assuming the reins of power 21 months ago, has reduced the Special Petroleum Tax (SPT) twice.
In March 2017, the 17.5% tax was slashed to 15% and in February 2018, it was reduced further to 13%.
The minister said if John Mahama was still president, “Ghanaians would be paying close to between 9% to 10% higher than the current prices”.
“Prices today would have been GHS5.54 for petrol and GHS5.55 for diesel,” he added. The prices for both products are currently GHS5.12, Mr Amewu said.
But the opposition National Democratic Congress (NDC) who introduced the SPT in 2014 says the tax has outlived its purpose and should be scrapped totally.
In 2014, the NDC government planned the year's budget on a projected price for the country's oil exports but toward the end of that year, the price of crude had plummeted drastically on the international market causing the Seth Tekpeh-led Finance Ministry to introduce the tax to plug the hole created.
The then NDC Member of Parliament for Madina, Alhaji Amadu Sorogho said the imposition was “rational”, arguing it was necessary for the government to look for revenues that could easily be collected.
Minority spokesperson on energy Adam Mutawakilu told Joy News in February 2018 that the prices of crude have gone up on the international market and demanded that the SPT be scrapped.
Mr Amewu however, says the decision to totally scrap the tax would be arrived at after review talks with the Finance Minister are finalised.
Reckless deals
Mr Amewu also noted that some 11 agreements signed under President Mahama are being considered for cancellation.
He said the government is forced to pay an amount in excess of 50 million dollars for power projects that are not needed because of excess installed capacity.
Describing these agreements as “reckless”, Mr Amewu said the taxpayer is paying for what is not needed.
It will cost 402 million dollars to terminate the 11 agreements but it will cost government 586million dollars yearly to stick to these deals.
John Jinapor
Former Deputy Power Minister under John Mahama has, however, hit back at Mr Amewu on his claims that the excess power is not needed.
“If it is not needed why do they seek to extend the AMERI deal,” John Jinapor told the Mid-day news on Joy FM.
He noted that the NDC will respond to all the claims made by the Minister later.
Source: peacefmonline.com
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NPP Government and minister now prophets
We will insult any government that does not perform. Nana is making things worse. Take from those who are taking our wealth way. Charley he is rather giving bauxite and other important resources away for free. What is 2 billion dollars which the cocoa farmers alone give to this country every year. This is blocke headednessss. Shaaaaaa!!!. Stopidd leadership. You had the audacity to insult kwame nkrumah. Even common bauxite you don't know how to make money from it. You take 2 billion dollars from China and open your legs wiiide ready for anything.
Rapacha, are you saying it is normal to buy fuel at international price when we are producer of oil? Does it make sense to you? Who takes even 100 million dollars and gives his bauxite away for 100 years? Massa call the forking spade a spade. If you support a political party like that the only thing you can get is extreme poverty. No wonder we are not getting any thing from oil.
Stop the excuses and work.
Hey fellow Ghanaians. What is the meaning of all these insults? Check out gas price on the world market. Do you want to get everything free? This Government is trying to build this nation for us and all they get is insults. We have to be realistic a patriotic citizens if we want to move our country forward. We are complaining too much my fellow country men. The president and his team are working very hard to put this country on the right foot and all they get is complain and insults. You guys are free vote back the most corrupt president in the history of this country John Mahama. Wait until 2020 and bring back your John Mahama. What we need to do now is to pray and support this government because clearly you cannot compare this government to Mahama's NDC my fellow countrymen. May Allah bless our beloved country Ghana.
Tok bele Minister...I personally thought you were different. Only to realize that you are more ***barred word*** than your predecessor. How can you just vomit rubbish like this? Are you ok? Offuuuii
I!O!O! Who was telling me that Amewu was the most sensible guy in this government? Is that what I was being told about? Is this signs of competence or incompetence? Where did we go wrong as a nation. Well we can’t be sure of your assertions unless we voted yiu out and allow Mahama and his NDC to reign. But I’m seeing serious arrogance creeping into this government of Akuffo Addo. It’s sad that in 20 months you seem to lose it all. What happened to the massive goodwill Ghanaians gave you.? How can you blow it all on the alter of pride and incompetence?
Work and stop that plenty talk
When stup1d1ty clouds the judge of a man he talks f00lishly.
This is the epitome of arrogance. We are talking about a government who in opposition criticized fuel price increases anytime fuel is increased by their predecessors, and now here you shamelessly talk like we the people of Ghana have cotton wools in our head. Look stop adding insult to injury. This is pure arrogance and disrespect to the good people of Ghana. I thought Bawumia said you have the best economic management team Ghana has ever had. So what’s all this non. Sense about John Mahama would’ve increased it higher. Complete absurdity. Is John not voted out because of all these, so what’s the logic of such a man we all call a minister. We’re a country of jokers that’s why such a person will manage our energy ministry. It’s so annoying to have a person like this who is enjoying our tax payers money insult us in such an unintelligent way.