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Petroleum Prices Will Go Up By Only 3% – NPA   
 
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20-Nov-2014  
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The National Petroleum Authority (NPA) has explained that the imposition of the 17.5% tax on petroleum products will result in only a 3% increase in petroleum prices.

The Authority has rejected claims that Special Petroleum Tax will mean consumers will pay 17.5% more on petroleum prices.

The Finance Minister, Seth Terkper, on Wednesday submitted a bill to Parliament requesting the approval of a Special Petroleum Tax Policy which will see the introduction of 17.5% VAT on petroleum products.

Parliaments has approved the controversial 17.5% Special Petroleum Tax bill.

The approval was given by only the Majority Members of Parliament (MPs) after the Minority MPs staged a walkout during a debate on the bill.

Mr. Terkper’s announcement has angered Ghanaians and the Minority in Parliament who say petroleum prices must be reviewed downward since crude oil prices on the world market has hit a record low.

In an interview on Eyewitness News, the Chief Executive Officer of the NPA, Moses Asaga explained that government is keen on increasing revenue; hence, the introduction of the 17.5% VAT.

“Government is looking for revenue…and the Minister of Finance was very, very passionate about raising revenue through petroleum taxes,” adding that, his outfit “will still stick to the Automatic Adjustment Formula after they have applied the Special Tax on petroleum products.”

He stressed that when Parliament approves the 17.5% VAT, “ it does not mean that today or tomorrow, if you go to the pump, you are going to pay 17.5% on top of what you are paying today because we are managing it very effectively.”

“This exaggerated 17.5% is not going to exist; it’s not going to be anything near 17.5% increment,” he stressed.

Mr. Asaga mentioned that the price of Liquefied Petroleum Gas (LPG) will be reduced by 10% while the price for Residual Fuel Oil used for industries and Premix Fuel for fishermen will see no upward adjustment “so it isn’t like the 17.5% is across board but there are exemptions for it.”

The NPA boss allayed the fears of Ghanaians that the 17.5% will translate into an upward adjustment of transport fares.

He gave the assurance that there is an existing agreement between the GPRTU, NPA and the Ministry of Transport therefore; citizens can be rest assured that transport fares will remain same.

 
 
Source: Citifmonline.com
 
 

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