Fuel prices to go up — Ken Ofori-Atta

The cost of fuel will soon shoot up following the Finance Minister’s announcement of an increase in Energy Sector Levies Act (ESLA) which charged on petroleum products.

Speaking on the floor of Parliament today, Mr. Ofori-Atta said the government had to turn to the ESLA to raise more funds to settle legacy debts inherited from the previous government.

“Government proposes to increase the Energy Sector Levies by GHp 20 per litre for petrol and diesel and GHp 8 per kg for LPG, so as to increase the inflows to enable Government issue additional bonds to pay down our energy sector debt obligations. Based on current indicative prices for petrol and diesel this translates to GHp 90 per gallon,” he said.

The Government in 2017 issued the Energy Sector Levy Act (ESLA) Bond, which has, to date, raised almost GHS 6 billion on the back of ESLA levies to pay for legacy debts from the previous government.

The bond proceeds were used to liquidate approximately 60% of the energy sector legacy debts. gallon. Source: citinewsroom.com