The Trades Union Congress (TUC) has made a strong case to government for the suspension of the petroleum deregulation policy to help cushion workers amidst the economic challenges faced by the public since the outbreak of the COVID-19 pandemic.
The policy, which started 6 years ago was introduced to allow market forces determine fuel prices in the country. By this, the implementation of the policy allowed the various Bulk Oil Distributing Companies (BDCs) and oil marketing companies (OMCs) to determine the price of fuel without government intervention.
According to the TUC, workers have no option than to deal with a consistent increase in the price of goods and services which its researchers have linked to the ever-rising cost of fuel at the pumps.
The Director of Labour Research and Policy Institute, at the TUC, Dr Kwabena Nyarko Otoo told the B&FT in an interview that, workers are living in very difficult times.
Speaking at an Organised Labour Economic Dialogue on the Mid-Year Budget Review, Dr. Nyarko Otoo noted that government must come to the aid of ordinary Ghanaians to ameliorate their plight.
“Because of COVID, government itself has suspended the Fiscal Responsibility Act so that it can draw more resources from the Bank of Ghana,” he said adding that the same principle should apply to Ghanaian workers since the economic situation is not normal.
“Anybody who hears that fuel prices have gone up also increase their product and services. If that is the case, we are calling for the suspension of the deregulation exercise because we are not in normal times”
He said the TUC believes that a suspension of the deregulation regime would go a long way to ensure price stability which would help in economic management and give some relief to government.
Petroleum taxes
Meanwhile, the TUC has described as nuisance some taxes on petroleum products and have said it is high time government reviews them. Dr. Nyarko Otoo said it is about time government restructure the cost build-up of petroleum prices, and also reassess the existing deregulation programme in the country.
Included in every litre of fuel purchased are several taxes, levies and margins. They include the Energy Debt Recovery Levy, Road Fund, Energy Fund Levy, Price Stabilization and Recovery Levy, Special Petroleum Tax, Primary Distribution Margin, BOST Margin, Fuel Margin Marking, Marketers Margin and Dealers Margin.
With the new and amended taxes which began on May 1, 2021 Sanitation and Pollution Levy was added.
Dr. Nyarko Otoo maintained that: “It is abnormal for a particular product to have 6 or 7 taxes and levies on a litre of fuel”.
“We are asking government to review the taxes and levies on petroleum products. It is possible for government to eliminate nuisance taxes and levies to ensure that the citizenry can get some respite.” he added
