The Former Chief Government of the Countrywide Petroleum Authority (NPA), Alex Mould, is predicting a 20% reduction on price ranges of petroleum solutions starting April 1, 2020.
According to him, “per the day-to-day rate indicators applied for the Petroleum Price Create-Up (PBU) and published by the NPA, we have witnessed globe crude oil prices dropped from $540/ton (t) in March 1 to $212/ton (t) which interprets to a fall of 60%.”
“Going by these PBU indicators and the methodology applied to derive them, we count on petrol costs to go as minimal as GHS GHS4.00/litre.
“This price can go down even even more with Governing administration interventions in the type of tax breaks” he mentioned in a press assertion.
The Finance and Vitality Professional claimed the obstacle confronted by the latest year supply a responsibility for the the overnment to rapidly pay a visit to “win-win” prospects to relieve some of the economical burdens on all Ghanaians.
Examine Comprehensive Statement
As the lockdown to beat the distribute of the coronavirus is now in impact, Ghanaian family members and companies will have to reset. A domino result on our economy brought on by the pandemic is expected to convey about issues this sort of as loss of earnings, business enterprise, boost in the prices for products and providers, and other components impacted by improved transportation prices.
The troubles of the recent period supply a obligation to rapidly go to “win-win” prospects to reduce some of the financial burdens on all Ghanaians – April 1st provides a “no-brainer” opening to lower the charge of petrol at the pump.
Petrol is at its least expensive cost considering the fact that the 1990s – $.38/gallon wholesale from U.S refiners and Wholesalers. With this in mind, Ghana must hope a drastic fall of up to 20% in petrol price ranges on April 1st.
Petrol is currently imported into Ghana for a lot less than $.24/litre or GHS 1.40/litre (dependent on Forex amount of GHS5.85 GHS/USD).
The day-to-day rate indicators utilised for the Petroleum Rate Establish-Up (PBU) as printed by the Nationwide Petroleum Authority (NPA) are as follows:
– 1st March: $540/ton (t)
– 16th March: $434/ton (t)
– 1st April: $212/ton (t)
This translates to a fall of 50% from 16th March and a 60% drop from 1st March.
Heading by these Rate Develop-Up (PBU) indicators and the methodology made use of to derive them, we hope petrol price ranges to go as very low as GHS GHS4.00/litre. This selling price can go down even even further with Governing administration interventions in the sort of tax breaks.
From the PBU, the taxes and distribution prices of petrol are GHS1.50/litre and GHS1.10/litre respectively (or GHS 2.60 blended) which represents about 65% of the pump price tag of petrol.
This tends to make Ghana one particular of the greatest-taxed countries with respect to petrol.
I am reliably informed that Federal government is being recommended to significantly contemplate eradicating the nuisance “Special Tax” (GHS0.46/litre) and the out-of-date “Price Stabilization” levy (GhS0.16/litre). If carried out, we could see charges drop even decrease than the anticipated GHS 4.00/litre to under GHS 3.50/litre.
Enacting these quite doable reductions would be a reduction to so several – remembering that almost 80% of our population constitutes key workers who, in serving the general public will have to embark on alternate (and extra high-priced) transportation indicates to preserve them selves safe and sound, as for every social distancing rules.
· Note: a US Gallon is 3.875 litres whilst a British isles Imperial Gallon – what is employed in Ghana – is 4.5 litres.
· PBU is agreed to by all the gamers in the price chain – (Chamber of Bulk Distributors (CBOD), Affiliation of Oil Internet marketing Organizations (AOMC), Tanker Entrepreneurs, and Tanker Drivers collectively the sector players).