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Fuel prices to go up as gov’t increases ESLA levies

Fuel prices in the country are likely to be reviewed upward in the coming days as the Finance Minister, Ken Ofori-Atta, has announced an increment in levies related to the energy sector.

According to Mr Ofori-Atta, the government introduced the Energy Sector Levy Act (ESLA) Bond in 2017, which has raised about GHS 6 billion on the back of ESLA levies to pay for legacy debts from the past National Democratic Congress (NDC) era.

Presenting the 2019 mid-year budget review speech, Mr Ofori-Atta told lawmakers in the country on Monday, 29 July 2019 that: The bond proceeds (in the past) were used to liquidate approximately 60% of the energy sector legacy debts”.

He continued: “Government proposes to increase the Energy Sector Levies by GHp 20 per litre for petrol and diesel and GHp 8 per kg for LPG, so as to increase the inflows to enable Government issue additional bonds to pay down our energy sector debt obligations. Based on current indicative prices for petrol and diesel this translates to GHp 90 per gallon”.

Meanwhile, Mr Ofori-Atta has said Ghana’s oil sector faces a brighter future following the good policies introduced by the Akufo-Addo-led government.

Mr Ofori-Atta noted: “Mr Speaker, three months ago, I came here, together with my colleague, John Peter Amewu, to ask for approval for the amended Petroleum Agreement for AGM Petroleum in the South Deepwater Tano block.

“Since then, the Norwegian oil company has drilled two wells in the block – two more than the number of wells drilled under the previous administration.

“And, just two weeks ago AGM announced that they had discovered oil in an area called Blessing. This comes barely six months after Aker announced that it had discovered oil after a mightily successful drilling exercise in the Deepwater Tano Cape Three Points block, which was reported as the biggest find in Africa. The future is, indeed, brighter. All that I can say, Mr Speaker, is that we thank God for his blessings on Ghana,” he stated.

He added: “Mr Speaker, in line with our objectives for 2019, the government is implementing a number of programmes to revamp economic and social infrastructure to support industry, facilitate business development and deliver social services.

“Mr Speaker, our industrialisation and agricultural modernisation drive is on track and transforming Ghana. Our social protection and intervention programmes have seen major expansion and efficient gains.”

Source: Ghana/ClassFMonline.com/91.3FM

GWO

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