Revealed : 70% Of Fuel Cost In Ghana Taxes

Revealed : 70% Of Fuel Cost In Ghana Taxes

The Finder newspaper has shockingly revealed that 70% of the cost of fuel in Ghana today are taxes.

According to a Finder report Ghanaians are not enjoying the drastic fall in fuel prices because taxes alone are draining their pockets.

Even though a barrel of crude oil on the world market as of yesterday was $38, as against $100 in June last year, consumers in Ghana now pay about GH¢15 per a gallon of fuel, an unreasonable price.

On the other hand, in the United States of America (USA), a gallon of petrol is sold at just about $2.

The fuel price increase has imposed more hardship on the already suffering Ghanaian.

Meanwhile, a barrel of crude oil on the world market as of Monday was $38, as against $100 in June last year, consumers in Ghana now pay about GH¢15 per a gallon of fuel, an unreasonable price.

On the other hand, in the United States of America (USA), a gallon of petrol is sold at just about $2.

With the new increases, taxes on petrol per litre are Excise Duty, 2.78 pesewas per litre; Energy Debt Recovery Levy, 41 pesewas per litre; Road Fund Levy, 40 pesewas per litre; Energy Fund Levy, 1 pesewas per litre; Price Stabilisation and Recovery Levy, 12 pesewas per litre.

Other margins are Primary Distribution Margin, 4.5 pesewas per litre; BOST Margin, 3 pesewas per litre; and Fuel Marketing Margin, 1.5 pesewas per litre.

Each tax component and margins also attract 17.5% Value Added Tax (VAT), which the consumer also pays.

For diesel, the tax components per litre are Excise Duty, 1.8 pesewas per litre; Energy debt recovery levy, 41 pesewas per litre; Road Fund Levy, 40 pesewas per litre; Energy Fund Levy, 1 pesewa per litre; Price Stabilisation and Recovery Levy, 10 pesewas per litre.

The breakdown of the GH¢3.2 billion revenue for the four-and-half years is 2011 -GH¢390,663,167.40; 2012 – GH¢468,627,829.51; 2013 – GH¢514,341,781.52; 2014 – GH¢775,984,110.74; and Jan-June 2015 – GH¢1,053,949,345.67.

For the four-and-half-year period, Road Fund accumulated GH¢880,478,324.35; Excise Duty generated GH¢338,096,690.34; Energy Fund accrued GH¢7,004,420.51; Exploration Levy amounted to GH¢14,688,001.25; Cross Subsidy bagged GH¢134,324,167.04; TOR Debt Recovery Levy generated GH¢1,165,635,051.25; and Special Petroleum Tax (SPT) amounted to GH¢931,983,887.18.

  Source: Finder  

 

Source: Yen.com.gh

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