Following the recent hikes in fuel prices in the country, the government has been urged to account to Ghanaians in respect of the ¢1.26 billion generated from the Price Stabilisation and Recovery Levy (PSRL).

Executive Director of the Institute for Energy Policies and Research (IEPR), Kwadwo Poku, in an interview on Prime Morning on Tuesday, said the government should use the money to cushion Ghanaians from the effects of the high petroleum prices.

"It’s good you want to take 16 pesewas off but there is ¢1.2 billion; come and account to Ghanaians on our money. Where is that money? If that money sits there, then one thing we want is that tell us how you want to use that money, he said.

The Price Stabilisation and Recovery Levy was introduced in 2015 under the Energy Sector Levies Act, 2015 (Act 899).

Recently, President Akufo-Addo approved the reduction of the levy, which is currently 16 pesewas for petrol and 14 pesewas for diesel to zero.

But the Energy Analyst is unhappy because to him, the government has not demonstrated the will to deal with the challenge Ghanaians have been facing for the past five years.

Mr Poku believes that just reducing the PSRL will not be enough until government applies it to cushion consumers against rising crude oil prices, as established by law.

"There is money that the law says it should be used for one thing, government cannot use that money for anything else. As far as we are concerned, nobody has gone to Parliament to say that, that money has been used for something else, so it’s easier to use the money to subsidise fuel now," he noted.

However, he cautioned government against abolishing taxes.

Adjustment of fuel prices

Some Oil Marketing Companies (OMCs) have started increasing prices of fuel at the pump stations.

The Association of Oil Marketing Companies (AOMC) has announced that the two-month removal of the price stabilisation and recovery levy would not lead to a reduction in fuel prices in the next pricing window.

The upward adjustment is as a result of rising crude oil prices on the international market. The price of crude oil is presently going for about $82 on the world market.

This latest increase in fuel prices is likely to compel the unionised transport operators to kick start the process of increasing fares.