Prez Mahama recommends “mitigation levy” on petroleum products to NPA

The President has recommended to the National Petroleum Authority, NPA, to consider what he described as a “mitigation levy” on petroleum products.

In the view of the President, the mitigation levy will cushion users of petroleum products when the price of crude begins to rise again.

He however indicated that the prices of petroleum products at the pumps may be reduced further if prices of crude oil continue to fall.

The President said, if the call for a drastic reduction is heeded to, it will be at the expense of major developmental projects, since it is with revenues generated from such windfalls that development projects are done.

He justified the 10 percent reduction in fuel prices, describing it as drastic enough.

The NPA last month reduced fuel prices by 10 percent with effect from the 1st of this month; however, the reduction has been described as inadequate by the NPP, a number of groups and individuals.

But President Mahama says it will not be prudent to reduce the prices further.

He said government still owes the Bulk Oil Distribution Companies about 171 million Ghana cedis and the over recoveries will help settle the arrears.

Source: GBC