The Director of Planning and Research at the Africa Centre for Energy Policy, (ACEP)John Amowu says full cost recovery on petroleum product policy in the country is as a result of the mismanagement of foreign exchange deferential by the managers of the economy.
He was speaking at the sidelines of the business and networking meeting organized by the Canadian Chamber of Commerce Ghana on the theme Ghana Subsidy: the Way forward.
According to Mr. Amowu, such inimical policies can be done away with if government concentrates its efforts at tackling the depreciating cedi
“If you look at the exchange rate deferential is so huge due to the fact that we have to buy products in dollars and sell in the local currency the cedi which is difficult and the rate would have to be paid by someone which is always passed on to the final consumer.”
He noted that it is not the fault of Ghanaians that “we see this huge exchange rate deferential but that of whoever is responsible for the monitory Policy of this country in terms of those fiscal planning and that is why we are witnessing the exchange rate deferential.”
He further called for the scrapping of some of the levies on petroleum products arguing that it has lost relevance even though he agree that reforms in subsidy is a process and needs education to be done.
“I think that taxes across the product must vary instead of having a uniform tax for the product since the fisher folks enjoy some rebate but what about the farmer who goes to his farm to use the tractor by buying diesel, also GNPC levy must be removed because they are undertaking exploration now.”
By: Norvan Acquah–Hayford/citifmonline.com/Ghana