Parliament last Thursday passed into law the Customs and Excise Amendment Bill in fulfillment of the governments promise to waive some taxes on petroleum products to help alleviate the hardships that the people have faced in recent times.
The new law which seeks to reduce petroleum taxes and related levies was passed following an announcement by the Finance Minister, Dr Kwabena Duffuor of a reduction of taxes on petroleum products in Parliament.
The plunge in fuel prices will be the first after prices were reduced by the Kufuor administration in December 2008 following drops in international market prices of crude oil.
Experts at the NPA say the reductions will ensure a drop in the litre price of petrol from 82 to GHp78 and diesel from about GHp89 to GHp85 representing a drop of 5% and 2.8% respectively. Liquefied Petroleum Gas (LPG) on the other hand is expected to go down by about 10%.
A gallon of petrol is expected to sell at GH¢3.51 from GH¢3.69, and diesel also at GH¢3.89 from GH¢4.00.
The expected reduction which will be officially announced by the National Petroleum Authority on Monday 9th March 2009 according to the Minister, will result in loss of about 50 million dollars to the economy within the next nine months.