The approval follows advice from the National Petroleum Authority (NPA) to mitigate the impact of rising prices of petroleum products on the world market on consumers.
The purpose of the Price Stabilisation and Recovery Levy (PSRL) is to stabilise prices for consumers and pay for the subsidies on Premix Fuel and Residual Fuel Oil (RFO).
A statement from the NPA on Monday said the prices of crude oil and refined petroleum products had seen sharp increases on the world market due to a rise in demand of oil globally without a corresponding increase in supply, particularly from the Organisation of Petroleum Exporting Countries (OPEC) and its allies.
It said because pricing of petroleum products in Ghana was deregulated, changes in prices of petroleum products on the world market had a direct impact on prices at the pumps.
The statement said the outlook of prices on the global market showed an upward trend, hence the need to seek Government’s intervention to lower the levies to cushion consumers from feeling the full impact of the rising prices.
“At this time it is important that the PSRL, which is currently sixteen pesewas per liter (GHp16/Lt) on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG are zeroed to cushion consumers,” it said.
The statement said the NPA would work with the Ministries of Energy and Finance to quicken the legislative processes to give immediate effect to the directive by the President.
“We are grateful to H.E. the President for granting the request to zero these levies to minimise the effect of rising prices of petroleum products on the world market on consumers in Ghana,” it added.