Fuel Increment Necessary But Timing Wrong

The cost of constructing new road is expensive hence it is economically prudent to maintain the Current roads. In line with that, Parliament in 1997 passed the Road Fund Act 536 (1997) to finance routine and periodic maintenance of road and related facilities; upgrading and rehabilitation; selected road safety projects and other relevant activities as may be determined by the Road Fund Board.

Somewhere in March last year, a Deputy Minister for Roads and Highways, Mr. Isaac Adjei-Mensah made a startling revelation at a public forum in Takoradi, that what they have in their coffers can only sustain 60 per cent of the country’s road maintenance needs. So now what happens to the 40% of the roads?

It is said that every year, they require around 1.2 billion cedis to maintain all our roads. Unfortunately, they are given around 300 million cedis which is woefully inadequate. Road projects are stalled because contractors have huge unpaid arrears.

We are aware of the importance of good roads to our economy and general wellbeing. How do we fund these?

According to the Finance Minister Seth Tekper, the Energy Sector Levy Bill (2015) was passed part of the measures to increase the Road fund component in the fuel prices build up, restructure, re- nationalize and consolidate energy sector levies to promote the prudent and efficient utilization of proceeds derived from the levies to facilitate sustainable long-term investments in the energy sector.

This resulted in petroleum products increments between 18 to 28 percent.

The tax is very necessary considering what it is going to be used for. Unfortunately, the timing is wrong looking at a time just after Christmas when most Ghanaians are hard up and already burdened with utilities adjustments.

I believe the government can still defer the implementation of the law as it is doing with the 1% tax on investment.

We are watching...

Signed

Awal Mohammed.