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Business News of Monday, 17 December 2018


Fuel prices: Price stabilization levy not activated – Hadzide

Deputy Information Minister Pius Hadzide Deputy Information Minister Pius Hadzide

Deputy Information Minister Pius Enam Hadzide has denied claims by the Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, that government has reintroduced the Price stabilization levy following the continuous drop in fuel prices.

According to COPEC, fuel prices would have reduced further for consumers if government had not reintroduced the stabilization levy.

Petrol is expected to see a 5.8% reduction, while diesel and LPG will see a 4.8 and 2.4% reduction respectively.

It will be the third successive time for fuel products to see a reduction after it skyrocketed in the middle part of the year.

Speaking to Morning Starr Monday, Mr. Hadzide said the price stabilization levy, which was removed as part of efforts to offer respite to petroleum products consumers, cannot be introduced without parliamentary approval.

“Introduction of levy and related matters are matters that are brought before the august house of parliament.

We are witnessing a reduction of petroleum by an average of 5:8 percent and LPG by 4: 6 percent.

“As far as I’m concerned for the longest time stabilization levy has been reduced to zero,” he said.

He noted that various factors have accounted for the reduction in fuel prices.

“It’s a combination of more than one factor, but critical is the stabilization of Ghanaian currency and the price fall of oil on the international market.

He, however, said he would be surprised if the levy is reintroduced to rake in revenue in the windfall.

The levy was was introduced by the previous administration for good reasons and so I won’t be surprised If I discover it has been reintroduced.

Meanwhile, the Institute of Energy Security has backed claims by COPEC that the stabilisation levy has been brought back by the government.