The National Petroleum Authority (NPA) is estimating a 15 percent reduction in the prices of fuel at the pump by March 15, 2020.
“We believe that by the next pricing window, from what we have seen with the movement of the products, the prices and so forth, we’re likely to see something within the range of 15% reduction,” the Chief Executive Officer of the NPA, Hassan Tampuli said.
Mr Tampuli was speaking to the media on Tuesday, March 10, 2020, following calls from several groups like the Chamber of Petroleum Consumers (COPEC), the Institute of Energy Security (IES) and the opposition National Democratic Congress (NDC) for reduction of fuel prices.
The call follows the 30% drop in global crude prices and the relative stability of the Cedi against major international currencies.
COPEC, for instance, anticipated a reduction of between 10-32% compared to the 2% that consumers have been given since the start of the year.
Mr. Tampuli described the calls as premature and hasty and explained that the deregulation policy allows for two window periods within which price adjustments are to take place and that the next price window is March 15, at which time the changes would be effected by the Oil Marketing Companies (OMCs).
“We have observed the price movement from the 1st of March up to date, and there’s a very clear indication that the prices will go down by the 16th of March. So it is not for Sammy Gyamfi [NDC’s National Communication Officer] or anybody else to determine for us what the price should be. The industry people themselves understand that the prices have to go down because there’s a reduction in the price on the international market; government taxes have not increased, the cedi is way stronger than the dollar, and we should get the benefit of that,” he said.
COPEC, however, disagrees with this position since in most cases, the OMCs do not fully apply the same window rule when fuel prices go up on the world market, but often apply immediate reduction.
Mr Tampuli maintained that the government has been prudent in the management of the petroleum sector and any attempt by critics to downplay their efforts would be disingenuous.
“Let me also put it on record that but for the intervention of the government, Ghanaians would have been paying far more than they’re paying right now. On 7th January when Nana Akufo-Addo took office, the total price build-up consisted of over 40% taxes, levies, and margins, today that is 14% less, we’re doing 26%, and this has denied the government about 1.2 billion Ghana cedis, and that’s what the President has given to the Ghanaian people.”
“So if we talk about a government that’s responsive to the needs of the people of this country, what the President is able to do in terms of the taxes he has done so. And when it comes to the competent management of the cedi, it is there for all to see. So when prices go up on the international market, Ghanaians will pay accordingly, so now that the prices are coming down, nobody will tell the OMCs or the NPA or government that the prices should come down; it will come down naturally,” he said.
Source: Ghana/Starrfm.com.gh/103.5FM