Today in History: Fuel taxes not meant for development – Benjamin Nsiah

The Head of Research at the Chamber of Petroleum Consumers (COPEC), Benjamin Nsiah, stated that fuel taxes are not to be used for development.

He said: “One thing that worries COPEC is that we don’t mind paying taxes on fuel to develop Ghana but paying these taxes to offset debts of institutions that are not pulling their weight is a worry. Officials in these agencies do not execute their mandate and lazy about only being paid GH¢40,000 and GH¢25,000 a month.”

Read the full story originally published on November 12, 2021 by happyghana

Head of Research at the Chamber of Petroleum Consumers (COPEC), Benjamin Nsiah, says petroleum products are the engine of growth for any economy but argues the case is different in Ghana.

Instead of developing with its petroleum and oil resources, the country is only retrogressing, he posits.

In Ghana, there are 11 taxes, levies and margins on every litre of fuel purchased and this totals GH¢2.43 pesewas which are purposed towards the smooth operation of the government and its agencies.

“One thing that worries COPEC is that we don’t mind paying taxes on fuel to develop Ghana but paying these taxes to offset debts of institutions which are not pulling their weight is a worry. Officials in these agencies do not execute their mandate and lazy about only being paid GH¢40,000 and GH¢25,000 a month.”

“The Ghanaian pays 49pesewas on every litre of fuel purchased and this goes into the Energy Debt Recovery Levy. This money is used to pay the debt of TOR, people who mismanaged the economy and their work, and this debt only keeps on rising. The debt incurred by the Energy Sector is being paid by the struggling trotro driver although employees in the sector are being paid to make profits for the nation.”

Some Oil Marketing Companies (OMCs) have increased the price of fuel by about 10 pesewas. A litre of petrol is currently being sold at about GH¢6.90 at most fuel vending stations.

In the midst of the upward adjustments, the Ghana Private Road Transport Union (GPRTU) has urged drivers not to increase lorry fares.

These developments have made drivers agitated. They have stated their unpreparedness to continue to put up with the high cost of fuel.

Sixteen driver unions are demanding that the government scraps some taxes on petroleum products otherwise they will withdraw their services.

Speaking in an interview with Don Kwabena Prah on Happy98.9FM’s Epa Hoa Daben political talk show, he indicated that a pesewa is paid to the Energy Commission for every litre of fuel purchased.

“The Energy Commission is to advise the government and citizenry on the efficient use of energy but when was the last time you heard them promote the safe use of energy? The Commission makes GH¢23 million annually from taxes but they sit and do nothing and only pay themselves huge sums, using the rest to attend conferences in Glasgow whiles the petroleum consumer suffers.”

According to Benjamin Nsiah, the Ghanaian is tired and can no more take this insensitiveness from the government and pay for government inefficiencies.