BusinessNews

We’ve advised Government over fuel hikes – NPA to Ghanaians

The Communications Manager for the National Petroleum Authority (NPA), Mohammed Abdul-Kudus has indicated that the government is putting measures in place to reduce the price of fuel in the country.

This is after the NPA had approved the removal of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months, beginning from November.

Fuel prices still went up last week, heightening fears that a litre of petrol and diesel could jump up as Christmas is approaching.

The Chamber of Petroleum Consumers (COPEC) has said fuel price has been increased seventeen (17) times this year. Some driver unions have warned they would be halting their operations by midweek to protest the incessant increment of fuel prices.

But Abdul-Kudus who spoke to Prince Kwame Minkah on Tonton Sansan on TV XYZ Monday morning admitted petroleum prices had not slumped in months thereby contributing to food hikes.

He said the price of fuel was still high on the global market, forcing importers to channel the cost to the consumers.

“Basically it’s world crude prices that virtually is a greater determinant of the fuel price at the pump,” he said, adding that the situation has been so since 2015 after the implementation of the petroleum pricing formula.

“You have the cost of the fuel on the world market and also, the issue of the forex; exchange rates are those [factors] that trigger the change,” he stated.

Asked by the host what the NPA does to cushion petroleum consumers, he explained that apart from the direct impact of the NPA in deregulation, the Authority also advises the government through the relevant Ministries.

“We at NPA don’t determine price; we at NPA don’t determine taxes. we only regulate what has been determined…We have advised the government and the government has listened to us, but unfortunately, the prices are going up.”

But Sampson Addai,  the Head of Pricing and Monitoring at COPEC,  suggested that some taxes such as Special petroleum tax, Fuel marker margin, sanitation levy and BOST margin must be scrapped to reduce the prices of fuel.

He also asked the government to reduce the ESLA levy, adding ” if we are not able to do this, petrol price will be around GHS 34 cedis before the year ends.

He added, “as we are approaching Christmas, there will be pressure on the dollar.  International market prices and foreign exchange differentials are all likely to affect average pump prices of petroleum products.”

Meanwhile, Abdul-Kudus reveals he does not believe there will be a further price increment as Christmas approaches, saying their forecast and projections do not depict so.

 

By Henryson Okrah|Myxyzonline.com|Ghana

Back to top button