The Chamber of Bulk Oil Distributors (CBOD) wants the government to introduce new mechanisms to protect the country from the gradual rise in crude oil prices.
The Chamber is impressing on the government to among others, initiate processes that will stabilize oil revenue.
The Chamber argues that, this is necessary as Ghana is a net exporter of oil; that means the country imports more than it exports.
The CEO of the Chamber of Bulk Oil Distributors, Senyo Hosi, believes heeding their suggestions, should cushion consumers greatly.
“So we can hedge against cash settlement where the government rakes in a hedge income…the government will therefore reduce the taxes to correspond to the losses in income from crude oil exports,” he stated.
Crude oil prices have been rising gradually on the international market for some weeks now.
A barrel of the commodity is being sold at seventy-seven dollars.
This is expected to increase cost to importing countries like Ghana.
“In addition, the government could implement the crude price threshold which is the politically sensitive price that the government thinks it has. Assuming the CPT is pegged at 75 dollars a barrel, the government reduces the taxes to compensate the loss of tax revenue when the price goes above 75 dollars mark,” Mr. Hosi added.
Meanwhile, others have suggested that the government resorts to the stabilization fund to cater for the losses in revenue with the implementation of the hedging policies being offered.