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Gov’t offers 15 pesewas reduction on a litre of fuel, for 3 months

Government has announced what some Ghanaians are describing as “a paltry 15 pesewas reduction” on a litre of petroleum products.

The expected reduction will however take effect from the 1st of April and will last for only three months.

Finance Minister Ken Ofori-Atta announced the government’s mitigation measure at a press conference in Accra, which was called to inform Ghanaians of decisions taken by President Nana Akufo-Addo to ameliorate the worsening economic conditions in the country.

“To mitigate the rising price of petroleum products at the pumps for the next three months, government has decided to reduce margins in petroleum price build-up by a total of 15 pesewas per litre with effect from 1st of April,” he said.

This is among decisions government says it took at a special cabinet retreat at the Peduase Lodge, from where it was hinted that a number of measures that would have far-reaching consequences for the country’s current economic woes have been taken.

The price of various petroleum products has shot up astronomically just as food and other prices. Diesel is selling above 10 Ghana Cedis while petrol is inching closer to 10 Ghana Cedis per litre. The 15 pesewas reduction has not met the expectation of many Ghanaians.

Last week, the Concerned Drivers Association of Ghana gave government a one-week deadline to reduce fuel prices or face drastic action from its members.

Experts have also urged the Akufo-Addo administration to remove many of the nuisance taxes on petroleum products in order to reduce the burden on drivers and Ghanaians.

There are at least seven regressive taxes on petroleum products that disproportionately affect the ordinary Ghanaian. These include Energy Fund Levy, Sanitation and Pollution Levy, Price Stabilization and Recovery Levy, Energy Sector Levy, Special Petroleum Tax, Road Fund Levy, Energy Debt Recovery Levy.

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