By Mabel Adorkor Annang
The Association of Oil Marketing Companies, AOMCS says the decision by the International Monetary Fund, IMF to ensure that fuel levies and taxes on petroleum build-up price are calculated based on the US dollar rate, will increase prices of petroleum products at the pumps.
As part of IMF’s recommendations to government to raise more revenue in the petroleum sector, fuel levies will be adjusted in line with the exchange rate or inflation.
This is also part of the medium-term measures under the Energy Sector Reform Programme.
Chief Executive of the AOMCs Mr. Kwaku Agyeman-Dua tells GBCNEWS that the IMF’s conditionalities will compel the OMCs to increase their margins in order to sustain their businesses.
Mr. Kwaku Agyeman-Dua said the adjustment will not lead to unavailability of fuel.
“What it means is that the fuel prices will be changing because as of now we only change the SOF. The other taxes are all in Cedis, our margins are also in Cedis. So, if it’s going to happen, we have to make sure that our margins are also denominated in dollars,” He explained.
The Bank of Ghana is to gradually exit the gold for oil programme as proposed by the IMF.
The IMF advocates implementation of reforms to ensure a unified exchange rate market to address challenges with forex.
Reacting to this, Mr. Agyeman-Dua said the OMCs need a stable and transparent market.
Mr. Agyeman-Dua added that “We want a Forex market which can respond to the market properly in terms of demand and supply. We don’t want a market being accentuated in a way that someone is stressing figures. We want a market that is predictable and can easily help the business people. So, with the IMF proposal we are okay with it.”
Some of the conditionalities relating to the energy sector are yet to be implemented by the IMF.
Below is the video;
