Prices of petroleum products high because of too many taxes – Alex Mould

Deregulation petroleum industry has been beneficial

There is more competition in the petroleum industry now

Price hikes of petroleum products due to excessive taxes, Alex Mould

Former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Alex Mould, has attributed the hike in prices of petroleum

Read full articledue to the excessive taxes government has placed on them.

He said for consumers to benefit from a reduction in petroleum prices, the government must forgo some of the taxes it has imposed.

Alex Mould said the landing price of petroleum was 60 cents per litre but currently, customers in Ghana were paying $1.10 per litre which means there was an extra 50 cents charge – 35 cents to the government and 15 to the supplier.

He said in addition to the reduction of the price stabilisation levy which was reduced in November, the government must either reduce or remove the Special Petroleum Taxes on fuel products.

“Government has reduced the price stabilization levy that Ghanaians are being taxed too much," he added.

Speaking on Joy News, he explained that the reason for the Special Petroleum Tax was no longer relevant and therefore the tax should be reduced if not scrapped totally.

"Certain taxes of petroleum cannot be removed due to the binding force against bonds that have been issued from the Esla but special tax does not fall in that category," he said.

Also, he said the increase in price of fuel was not because of the deregulation of the petroleum sector.

The former GNPC boss said the deregulation of the sector had achieved its purpose of removing the influence of government in the setting of petroleum prices and also increasing the competition in the sector.