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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Master, Teacher, Lecturer Amewu you are in power oooh so stop mentioning John Dramani Mahama's name and work all what you saying the old lady, the old man in the rural areas dont listen or know and work hard and stop mentioning JDM name or are afraid of John Mahama, then you people should sit down for JDM to take control of the Nation. Stop lying and promising. Thanks.
unintelligent response. why dont we give John Mahama the power to see if what you are saying is true. i am very disappointed. i rated you better than this.
BY WHAT LOGIC?. ***barred word*** PEOPLE.
Ofuiii, overrated like Bawumiah. Did we vote for you to come and fix problems or to come and do comparison? Wo shoa s33 at3 wate!