OMCs likely to implement tax-induced price adjustments from May 4 – COPEC –

It appears most Oil marketing companies are yet to adjust upwards their prices of fuel in the national capital, Accra two days after the set implementation date for the newly introduced taxes.

The government during the presentation of the 2021 Budget Reading introduced some taxes including the Energy Sector Recovery Levy of 20 pesewas per litre of petrol/diesel and 10 pesewas per litre of Petrol and Diesel, all of which took effect May 1.

But what could have accounted for the delay in the price adjustment?

Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah explained that “The various oil marketing companies have stayed on their old prices largely due to the fact that they have old stocks that they would need to phase out of the system. However, any new lifting that any of them will be doing effective 1st of May, which was Saturday, these new taxes would apply.”

With Parliament approving these taxes introduced in the 2021 budget statement, the Ghana Revenue Authority announced it was poised to commence collection from the first of May.

Many were expectant to see the upward adjustment of the prices of fuel at the various pumps, but that was not the case.

However, most oil marketing companies continue to sell at the same price with market leaders, Goil, Shell and Total still selling at GHS5.45 per litre.

In anticipation of the increase in fuel prices due to these taxes, some transport operators like the Committed drivers union had hinted that they would pass on the difference to passengers by hiking transport fares.

Meanwhile, the Importers and Exporters Association of Ghana also said the public should expect upward adjustments in the prices of goods and services from the 1st of May as the new taxes take effect.