Member of Parliament (MP) for Yapei-Kusawgu, John Abdulai Jinapor, has cautioned government over the reduction of the Price Stabilisation and Recovery Levy without consulting parliament.

The National Petroleum Authority (NPA) gave orders to all Oil Marketing Companies (OMCs) and LPG Marketing Companies, to use revised prices in the Price Stabilisation and Recovery Levy Act to control recent price increases in petroleum products.

Per the revised levies, Petrol will remain at 12 pesewas per litre, while the levies for diesel and LPG have been reduced to 3 pesewas per litre from 10 pesewas per litre.

However, Mr Jinapor said in the article that: “Article 175 of the Constitution explicitly states that no taxation shall be imposed otherwise than by or under the authority of an Act of Parliament.

“It further states that Where an Act, enacted in accordance with this article, confers power on any person or authority to waive or vary a tax imposed by that Act, the exercise of the power of waiver or variation, in favour of any person or authority, shall be subject to the prior approval of Parliament by resolution”.

He, therefore, indicated that: “If Government is truly committed to reducing the burden on consumers, it should, as a matter of urgency, proceed to Parliament to seek an amendment of the Act, anything short of this is only deceptive”.

This is contained in a statement by Mr Jinapor released on Monday, December 4.

Below is the full statement:

I have noted with dismay, media reports the National Petroleum Authority (NPA) is claiming to cushion petroleum price increases on Ghanaians by amending the Price Stabilisation and Recovery Levy (of the Energy Sector Levy Act 899 of 2015 as Amended under Act 946) without recourse to parliament.

Section 5 of Act 899 states that;

The Minister shall cause to be opened and maintained an account known as the Price Stabilisation and Recovery Levy to provide:

1. Buffer for under-recoveries in the petroleum sector,
2. Subsidise petroleum prices and
3. Subsidise pre-mix and residual fuel oil.
4. The Levy imposed on petrol is Ghp12/Ltr, diesel is Ghp10/Ltr and LPG is Ghp10/kg.

It is important to remind the NPA that Article 175 of the Constitution explicitly states that no taxation shall be imposed otherwise than by or under the authority of an Act of Parliament.

It further states that where an Act, enacted in accordance with this article, confers power on any person or authority to waive or vary a tax imposed by that Act, the exercise of the power of waiver or variation, in favour of any person or authority, shall be subject to the prior approval of Parliament by resolution.

If Government is truly committed to reducing the burden on consumers, it should, as a matter of urgency, proceed to Parliament to seek an amendment of the Act, anything short of this is only deceptive.

Moreover, Section 8 (Interpretations) specifically stated that the Minister responsible for the oversight administration of the PSRL is the Minister of Finance and not the Minister of Energy.

It, therefore, comes as a surprise that the Minister of Energy is attempting to arrogate to himself the functions and responsibilities of the Minister of Finance.

At this moment, it is important to demand of the Akufo-Addo-led government to account for revenues accrued from the PRSL since assuming office and how the receipts have been disbursed.

Page 21 of the Annual Report on The Management of The Energy Sector Levies And Accounts for the Year 2016 Submitted to Parliament by Hon. Ken Ofori-Atta, Minister for Finance makes revenue collection projections for year 2017 amounting to GHS415, 344, 429 from the PSRL.

It is equally important to demand full disclosure from the NPA on the actual Petroleum Price Build Up (PBU) instead of the opaque manner in which the prices are being determined.

The big question is: What were the actual price changes at the pump preceding the so-called intervention by the NPA?

Analysis clearly shows most prices are to remain unchanged even with the full implementation of the PSRL.

John Abdulai Jinapor

MP, Yapei-Kusawgu