The National Petroleum Authority (NPA) has issued a directive to reinstate the Price Stabilization and Recovery Levy in the price build-up for petroleum products, effective April 4, 2024.
This decision was communicated through a letter to industry players obtained by Citi Business News, signed by the Deputy Chief Executive Officer of the NPA, Curtis Perry Kwabla Okudzeto.
This reversal has led to adjustments in fuel prices by some OMCs.
While the rationale behind this decision remains unclear, it is evident that it will impact the amount consumers pay for petroleum products and may likely result in an upward adjustment in transport fares.
Initially, the NPA had announced the suspension of the price stabilization and recovery levy in a letter dated March 28, 2024, with the suspension set to take effect from April 1, 2024.
This move was widely welcomed by industry players and energy think tanks as it provided relief to consumers who had been bearing the brunt of escalating fuel prices.
However, the suspension has been short-lived as the NPA has now directed its reinstatement in the price build-up of petroleum products only a few days after its implementation.
Consequently, oil marketing companies (OMCs) and liquefied petroleum gas (LPG) marketing companies are required to include 16 pesewas on a litre of petrol, 14 pesewas on diesel price, and 14 pesewas on LPG in the price build-up for petroleum products, effective April 4, 2024.
The Chamber of Petroleum Consumers (COPEC) has expressed dissatisfaction with the National Petroleum Authority’s decision to rescind the suspension of the price stabilization and recovery levy in the price buildup for petroleum products.
The energy think tank laments that consumers will bear the brunt of the reversal, leading to an increased cost of fuel at the pumps and LPG.
