Midyear Budget Review: Prices of Petrol, Diesel to go up by GH20p, GH8p for LPG
Government has proposed a 20 pesewas increase in price of petrol and diesel on each liter consumed, and 8 pesewas per kilogram of Liquefied Petroleum Gas (LPG). Finance Minister Ken Ofori Atta in parliament today, as he delivered the 2019 Midyear Budget Review, justified that the proposed increment would enable government to repay legacy debts in the energy sector, which had accrued from NDC’s “Dumsor Days”
He disclosed that about 60 percent of the energy sector legacy debts have been serviced by the current government yet feared it might be overwhelmed by it if some strategic action is not taken to salvage the economy.
“Mr. Speaker, you may recall that Government in 2017 issued the Energy Sector Levy Act (ESLA) Bond, which has, to date, raised almost GHS 6 billion on the back of ESLA levies to pay for legacy debts from the NDC’s “dumsor days”. The bond proceeds were used to liquidate approximately 60% of the energy sector legacy debts. Government proposes to increase the Energy Sector Levies by GHp 20 per litre for petrol and diesel and GHp 8 per kg for LPG, so as to increase the inflows to enable Government issue additional bonds to pay down our energy sector debt obligations” he noted.
Mr. Ken Ofori Atta stressed that the proposed increment would amount to a 90 pesewas increase on price of Petrol and diesel per gallon.
He outlined some other measures government is taking to resolve the ballooning legacy debt- amongst these measures is the relocation of the Karpowership to Takoradi, and increase power exports to neighbouring West African Countries.
“In addition to the above, Government is also taking steps to relocate the Karpowership to Takoradi to immediately utilize Sankofa gas; Increase power exports by extending the grid to other West African countries; Streamline management of street lighting to ensure accountability and transparency in billing and payments; Increase productive uses of electricity and natural gas to spur industrialization; and engage gas suppliers with a view to reducing the price of natural gas” he stated.