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Fuel Prices To Drop by 15 Pesewas Per Litre For 3 Months – Ofori-Atta

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Fuel Prices Expected To Go Up Again From Wednesday

Finance Minister, Ken Ofori-Atta, has announced that government will from April 1, 2022, reduce fuel price build-up margins by 15 pesewas per litre.

According to Mr Ofori Atta, the reduction is aimed at mitigating “the impact of the rising price of petroleum products at the pump, for the next three months.”

The details are as follows:

  1. BOST margin reduced by 2 pesewas per litre
  2. Unified Petroleum Pricing Fund (UPPF) margin reduced by 9 pesewas per litre
  3. Fuel Marking Margin (FMM) reduced by 1 pesewa per litre
  4. Primary Distribution Margin (PDM) reduced by 3 pesewas per litre

Mr Ofori-Atta explained during his speech on Thursday that the rising fuel prices at the pump are largely influenced by rising crude oil prices on the international market and exchange rate depreciation hence the increase in petroleum products.

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According to him, while the rise in crude oil prices in the international market should have benefited the country on a net basis, Ghana’s imports of petroleum products amounted to 5.2 times the value of its crude oil export proceeds.

“In 2022, we exported $3,947.70 million of which Ghana’s portion was $513 million. However, we imported $2,719.00 of crude oil and finished products. The purported windfall gain in foreign exchange is a mirage.

“From January to date, the average ex-pump price of diesel and petrol have increased by 57% and 45% respectively,” he explained.

He, however, stated that the reduction in margins of petroleum price build-up to be initiated in April is “expected to reduce prices of petrol by 1.6% and diesel by 1.4%.”

“We anticipate that the measures taken to strengthen the currency will help further stabilize the prices at the pump,” he added.

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He further disclosed that discussions are underway with the National Petroleum Authority (NPA) to also reduce margins at the pumps “within the spirit of burden-sharing.”

“The Government will do all it can to ensure consistent supply of fuel and manage the rate of the ex-pump price increase by ensuring that BoG has access to adequate foreign exchange,” he said.

Also, the Finance Minister announced a 50% cut in fuel coupon allocation for state appointees effective February 1, 2022 as part of measures to mitigate the economic hardships in the country.

 

 

 

 

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Source: GhArticles.com

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Salaries Paid Via MoMo Will Attract E-Levy – GRA Warns

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E-levy: GRA To Refund All Wrongful Deductions To Consumers

The Ghana Revenue Authority (GRA) has indicated that workers who receive their salaries through mobile money platforms will have E-Levy charges on them.

According to a Principal Revenue Officer and Head of the Project Management Unit at GRA, Isaac Kobina Amoako, workers should brace themselves for this, starting May 2022.

“… salaries are paid from their bank accounts onto mobile money platforms, the 1.50% fee will be deducted into the government coffers.”

The incident of the E-Levy charges on salaries paid via MoMo will be on the employer and not the employee.

Mr. Amoako explained that the controversial E-Levy is structured so that tax is factored into all revenue mobilisation streams.

In an interview with Joy News, the GRA official added that the Authority is ready to implement the E-Levy from May 1.

The official further explained that the current framework created by the law as it stands does not distinguish a corporate mobile money account and an individual mobile money account.

For the banks, the disbursements from corporate accounts were not mentioned so it is clear that one is exempt. But in the MoMo, there was no distinction between the corporate MoMo account and the individual MoMo account,” he told JoyNews.

He concluded by saying E-Levy will not be charged on salaries paid through the traditional way, i.e banks.

 

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Source: GhArticles.com

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Cedi Records 18.21% Depreciation To Dollar In Quarter 1; Ranked Among “Worst Spot Returns – Bloomberg

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Cedi and Dollar

The cedi recorded an 18.21% rate of depreciation to the US dollar in the first quarter of 2022, according to Bloomberg.

This still ranked the local currency as the worst among African currencies with the “Worst Spot Returns”. However, for the timely intervention by the Bank of Ghana, the situation could have been worse.

Despite the country benefiting immensely from the high price of crude oil on the international market and to some extent the favorable price of gold, the cedi has not fared well so far this year.

It came under severe pressure, particularly in the months of February 2022 and early March 2022. This was largely as a result of immense demand for the US dollar, as investors seek for dollar denominated assets, due to unfavorable ratings of Ghana’s economic outlook by rating agencies, Fitch and Moody’s.

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Government had also faced stiff opposition in getting some revenue bills, particularly the Electronic Transaction Levy, from getting passed. Similarly, investors wanted some reassurance by government that it was committed to narrowing the fiscal deficit, whilst reducing arrears and the rising debt.

However, the E-Levy has since been passed, whilst the government had introduced fiscal measures to revive the fiscal economy.  Coupled with the timely measures by the Bank of Ghana, this has since slowdown the rate of depreciation of the cedi against the US dollar.

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Meanwhile, the Angolan Kwanza is the best performing currency in Africa this year with an appreciation of 24% to the dollar in the first quarter of 2022.

It is followed by the South African rand with an appreciation of 9.38% to the dollar.

CURRENCIES WITH “WORST SPOT RETURNS” AT THE END OF QUARTER 1, 2022

RANKING CURRENCY YEAR-TO-DATE
16th New Sudanese pound -2.08%
17th Ethiopian Birr -3.89%
18th Liberian dollar -4.94%
19th Sierra Leone leone -5.10%
20th Mauritian rupee -7.05%
21st Zambian kwacha -8.02%
22nd Egypt pound -14.27%
23rd Ghana cedi -18.21%

CURRENCIES WITH “BEST SPOT RETURNS” AT THE END OF QUARTER 1, 2022

RANKING CURRENCY YEAR-TO-DATE
1st Angolan kwanza  24.2%
2nd South African rand  9.38%
3rd Guinean franc  4.40%
4th Botswna pula  2.59%
5th Nigerian naira 1.74%
6th Kenya shilling 1.59%
7th Rwanda franc 0.66%
8th Mozambique new metical 0.19

 

 

 

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Source: GhArticles.com

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BUSINESS SPECIAL

New Sachet Water Prices Takes Effect Today

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Women selling sachet water

Sachet water price is expected to increase from today, April 1.

According to the National Association of Sachet and Packaged Water Producers (NASPAWAP), the new price of packaged water is informed by the increasing cost of raw materials and fuel and the cedi’s depreciation.

Barring any hitches, a water sachet will be selling at ¢0.40, while the 500ml bottled water will be retailed at ¢2. From Friday, iced bottled water of 750ml or medium size will be sold at ¢2.50.

A bag of sachet water, 500ml by 30pcs, will be sold at ¢6 maximum from the retail trucks.

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Mini shops, however, will retail the commodity at ¢8 per bag maximum. The 1.5L or large bottled water will be sold at ¢3.50.

President of the Asociation, Magnus Nunoo, has explained that most of the inputs and packaging materials which are mainly imported and produced from petroleum sources have seen price hikes.

“At our previous review, the dollar’s exchange rate was in the region of ¢6.50. Currently, it is inching up to ¢8.50. Fuel which forms a major cost of distributing the products to the market centres, has significantly gone up since our last review,” he noted.

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He, however, cautioned that there might be slight variations in prices across the regions due to haulage to remote and distant areas.

The president further appealed to government to review the tax policies on packaged water industry to help reduce the financial burden to save the industry.

 

 

 

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Source: GhArticles.com

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