The Institute for Energy Security (IES) is calling on the Government of Ghana to immediately suspend the Price Stabilization and Recovery Levy (PSRL) on gasoil in the upcoming petroleum pricing window to help ease the burden of rising fuel prices on consumers.
In a statement issued on March 15, the energy policy think tank said the temporary suspension of the levy would provide modest but timely relief to motorists, businesses and households currently facing increasing fuel costs.
According to the institute, recent developments in the international oil market driven by geopolitical tensions and global supply uncertainties—have placed upward pressure on petroleum product prices.
IES explained that these external factors, together with freight risks and volatility in global crude prices, continue to influence domestic fuel prices in Ghana.
The institute further indicated that pump prices for petrol and diesel are expected to rise in the second pricing window of March. While the relatively stable Ghanaian currency has helped moderate the full impact of global price increases, the organisation noted that consumers and businesses are still likely to experience cost pressures.
IES argued that suspending the PSRL during periods of rising fuel prices aligns with the original purpose of the levy.
“The Price Stabilization and Recovery Levy was introduced as a counter-cyclical mechanism to cushion consumers when fuel prices rise and to rebuild the stabilization buffer when prices decline,” the institute noted.
It added that although removing the levy may appear to offer only modest relief on a per-litre basis, the cumulative effect across the economy could help ease inflationary pressures.
At the same time, the institute cautioned that other structural levies in the petroleum price build-up play important roles in sustaining the financial health of Ghana’s energy sector.
IES therefore described the suspension of the PSRL as a targeted intervention that balances consumer relief with the need to maintain stable energy sector financing.
The institute also commended the National Petroleum Authority (NPA) for efforts to maintain transparency and efficiency within Ghana’s downstream petroleum pricing system.
It further encouraged government to strengthen the country’s energy resilience through improved storage management by the Bulk Oil Storage and Transportation Company (BOST), enhanced domestic refining capacity at the Tema Oil Refinery, and increased operational efficiency across the downstream petroleum sector.
Source: www.kumasimail.com
