ISODEC kicks against fuel mitigation levy

The Integrated Social Development Centre, ISODEC, is cautioning government against the planned introduction of a new levy on petroleum products.

President John Mahama hinted at the introduction of the levy when he spoke in a radio interview last week.

He argued that such a levy will ultimately help stabilise fuel prices on the local market when oil prices on the world market soar in the future.

However, the campaign coordinator at ISODEC Dr Steve Manteaw has told Starr Business that government must tread cautiously.

“As regards the pricing of the petroleum product, I think we’ve all agreed as a country to allow the market to determine, and so government should keep faith with the policy. If it intends to change the policy, it should let us know.

“…This policy inconsistency is not good for building public trust in Government,” Dr Mateaw added.

Concerning the fall in price of crude on the world market, Dr Manteaw said the trend is likely to compel the Government to dip its hands in the petroleum stabilisation fund to balance the budget.

“Government needs to concern itself with how it stabilises the budget and we are doing this by way of the petroleum stabilisation fund given that the prices on the global market are on a downward trend, government’s expected revenues on petroleum will fall short and so you can then fall on the stabilisation fund to balance the budget…”