Fuel prices: Remove PSRL, energy sector levy to cushion Ghanaians - Egyapa Mercer to Govt

Former Energy Minister and Sekondi MP Egyapa Mercer has urged the government to remove selected taxes and levies on petroleum products to ease the impact of rising fuel prices on consumers.

Mr Mercer said the government should consider scrapping levies that go into the Consolidated Fund, particularly the Price Stabilisation and Recovery Levy (PSRL) and the Energy Sector Levy.

Speaking on TV3’s Daily Brief on Wednesday, September 16, he said removing the levies could provide relief to consumers without adding to financial obligations in the downstream petroleum sector.

“What we believe government should be doing and the NDC said when they were in opposition is to prescribe a removal of the taxes and levies that go to the Consolidated Fund as a means to provide cushion to Ghanaians and also not incur debt in the Energy Sector downstream space,” he said.

He argued that additional government revenue from windfall gains could create room for reducing the tax burden on petroleum products.

“For example, they have to take away the Price Stabilisation Recovery Levy (PSRL) and also the Energy Sector Levy,” he said.

Mr Mercer claimed the government was generating between GH¢6 billion and GH¢8 billion in windfall revenue that had not been included in the budget.

He said that, although the government had incurred about GH¢12 billion, accounting for the additional revenue and costs associated with diesel relief could leave an estimated GH¢4 billion in excess revenue.

“If you look at what government is generating from windfall now, they are generating in excess of GH¢6-GH¢8 billion which was not budgeted for,” he said.

“Meanwhile, what they have incurred so far is about GH¢12 billion. So even if you do a net of what government has generated through the windfall and the crude price and what it is incurring by way of the so-called reduction in the margins, you will be getting some GH¢4 billion that government can still take into the Consolidated Fund as excess revenue that it didn’t budget for,” he added.

Mr Mercer maintained that removing selected taxes and levies could provide immediate relief to consumers while helping to prevent further financial obligations from accumulating in the downstream petroleum sector.