COPEC Petitions Speaker Over Increase in ESLA

The Chamber of Petroleum Consumers (COPEC) has petitioned the Speaker of Parliament over the proposed increase in components of the Energy Sector Levies (ESLA) which will lead to increase in fuel prices.

It said the current fuel price increase was coming at the wrong time which will eventually lead to an increase in the current fuel price by about four per cent and outlined series of cautions with COPEC highlighting the effect fuel price increases could have on lives of the citizenry.

COPEC's Executive Secretary, Duncan Amoah, has already indicated that it will protest the increase in the ESLA levies if attempts at dialogue are unsuccessful.

"We will resort to some initial dialogue to ensure that whatever the Finance Minister is proposing. Either Members of Parliament will reject it or not allow it to materialise. But if they still insist or push forward, we will not go on a demonstration, we will go on a sleepover.

"It shall affect every aspect of the economy and can bring serious challenges to the standard of living of persons and their purchasing ability. This will increase the cost of living of the ordinary Ghanaian, through increased transportation cost to vehicle owners and users."

"The ordinary consumer in the energy sector will be worse off and should not be made to pay for recurring debt ostensibly created by inefficiencies of the state-owned enterprises. In addition to the economic concerns, the increase in fuel prices would have a toll on the environment.

"As a country committed to curbing the menace of climate change, COPEC is of the opinion that, when the Liquefied Petroleum Gas (LPG) price increases, people will be demotivated in an attempt to move from non-environmentally friendly fuels to LPG, hence derailing the aim of government's LPG penetration target.

"The government can source for alternative means of revenue generation including employing prudent measures to check perennial leakages in the energy sector where the state loses over GH¢1.6 billion yearly to fuel smuggling, we also suggest the revamping and equipping State-Owned Enterprises like the Tema Oil Refinery (TOR) to make them productive and profitable," the petition said.

The mid-year budget reviews realised an upward adjustment in the Road Fund Levy (RFL), the Energy Debt Recovery Levy (EDRL) and the Price Stabilisation and Recovery Levy (PSRL). -citinewsroom.com

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