National Petroleum Authority (NPA) has instructed Oil Marketing Companies (OMCs) to with immediate effect implement the revised Special Petroleum Tax, which has been reduced by two per cent.
The NPA wants the reduced taxes to reflect in the price at the pumps effective 16 February, 2018.
The order was contained in a press release signed by the NPA’s Chief Executive Officer, Alhassan Tampuli.
The OMCs, directed Mr. Tampuli must following the two per cent reduction of the Special Petroleum Tax use a new template issued by the Authority to compute prices at the pumps.
Petrol price at the pumps are expected to reduce from GHS 4.67 per litre to GHS 4.50 per litre whereas diesel would be sold at GHS4.48 per litre instead of the GHS 4.67 per litre.
This follows passage of the Special Petroleum Tax Amendment Bill to reduce the tax from 15 percent to 13 per cent Wednesday, February 14, 2018.
President Akufo-Addo was expected to assent the bill Thursday February 15, 2018 so the adjustment could take effect in the next pricing window, which opened Friday 16, 2018.
The reduction was partly due to pressure from sections of the public for a complete scrap of the tax component on petroleum products.
Chairman of the Finance Committee in Parliament, Mark Assibey Yeboah said the drop in the price of crude on the world market is expected to cause a marginal decrease in the cost of petrol and diesel at the pumps.
“If we kept prices where they are now a litter of petrol GH¢4.66pesewas, diesel is also GH¢4.66pesewas [and] if we didn’t bring this amendment and things stay the same and because there is a drop in international price of crude, we would have seen a marginal decline from 4.67 to about 4.58.
“With this new specificity being introduced into the tax, if this should kick in immediately we should see a decline to about 4.5 on the 4.6. We are looking at saving about 70 pesewas per gallon,” he told Starr News.